Rashtriya Chemicals and Fertilizers Ltd – RCF – IDBI Capital
RCF is one of the leading producers of Fertilizers in India and was incorporated in 1978 with the reorganization of the erstwhile Fertilizer Corporation of India. Looking at the highertime frame chart we find that prices since Feb 10 have been undergoing some good accumulation, forming a pattern along the way.
Tracing back a bit we find that prices with their razor sharp rise in Jan 10,managed to complete an inverted Head and Shoulders pattern and broke out from it. However being unable to meet the target prices fizzled out from the rally and hence
later slipped into the aforementioned pattern formation. Interestingly, this pattern has been building atop the neckline of the H&S pattern, forming a kind of base on base pattern.With two crucial patterns in progress and with momentum supporting the formation, we recommend buying now for target 134-36 / 165.
Popularity: 3% [?]
Category: Medium Term
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