Punjab Chemicals
CMP 942
It is a wait and watch for us. It has completed one kind of correction pattern but gave a throw-under.
Many a times throw-unders indicate the end of correction but on many other occasions they indicate that they may fall more – this makes us bit doubtful.
Also it corrected upto 61.8% FIB level -many a times stocks bounce from these levels.
Other factor that support the baove theory is that RSI was not making lower low while the price was going down.
But again not sure – bottom-fishing is not easy ( that’s why we always suggest that let the stock start giving closing above 40 WEMA for few weeks)
Weekly Chart
Disclaimer :This post is just for learning few methods of price-patterns. Views are personal. No buy/sell recommendations. These are probability study methods and chances of success/failure depend upon various factors.
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