PI Inds is a leader in agrochem space with a proven business model over the years. It has been a big wealth creator in the past. Recently it formed a double bottom pattern at a level of 2350-60 and the intervening peak was at 3035. Stock price broke past that level and went up to post a swing high of 3500 before it started to correct. Currently it is at 3000, having posted a swing low of 2935 this week and the weekly candlestick shows a spinning top candlestick. (small real body with bigger wicks, indicating indecision). This indecision comes after having fallen for 4 weeks and having retraced 50% of its entire previous rally. The fall as of now also seems to have halted above the 30 week moving average on weekly charts, marked by dotted blue lines and which is seen rising, ( or 200 dema on daily charts).
After a breakout from any major pattern, a retest of the breakout zone is a possibility and often gives a chance for those left behind at the time of breakout to take a position, with appropriate stop losses. Here the pattern target is around 3700 (marked in dotted lines), cmp 3000, and a notional stop loss can be kept below recent swing low of 2935, according to one’s own risk profile. disc: no position… Posted only for academic purpose as it looks like a clean double bottom pattern with a retest going on.
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