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The stock of Alkyl amines has been on an impressive run where the price has more than tripled since March from as low as ₹1,040 to the current level of around ₹3,147. The scrip in fact registered an all-time high of ₹3,573.7 in the final week of August before softening to the current levels. The long-term uptrend in the stock is intact.
On Wednesday, after witnessing a decline in the first half of the session, the stock bounced off the 38.2 per cent Fibonacci retracement level at ₹3,060. Importantly, ₹3,000 is a very strong for the support. Hence, the price area between ₹3,000 and ₹3,060 is a strong support band and until the price is above that level, the short-term trend will remain bullish.
Supporting the positive bias, the stock is trading above the 21-day moving average and the daily relative strength index is the bullish region. Also, the moving average convergence divergence indicator is in the positive territory. Hence, traders can go long with stop-loss at ₹3,000. Short-term targets can be ₹3,375 and ₹3,415.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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