Hidden Gem: Will Panama Petrochem continue its uptrend?

Panama Petrochem Limited manufactures and exports petroleum speciality products that include mineral oils, liquid paraffin, transformer oils, petroleum jellies and ink oils.  

The stock of Panama Petrochem had jumped over 3% and marked a fresh 52-week high on Wednesday. With this strong move on Wednesday, the stock is on verge of a breakout of Expanding Triangle pattern on the weekly time frame. Expanding triangle pattern consists of a rising top and declining bottom.  

An important point to note is that the stock should sustain above the level of Rs 345-350 on a closing basis and then only this breakout could materialize. Failure to sustain trade above the aforementioned level could trigger a throwback in stock prices.  

The stock had formed an inside bar on the weekly chart as of week ended March 04, 2022, and thereafter, the stock is seen making higher highs and higher lows. Now, the stock is up by nearly 59% from the February lows.  

As the stock is trading near its 52-week high, it is trading above its short- and long-term moving averages. The stock is meeting Guppy Multiple Moving Average (GMMA) set up by Daryl Guppy. This structure indicates that the stock is in a clear uptrend.    

The stock's Relative Strength Index (RSI) has reached its highest value in the last 14 weeks, which is a bullish sign. Also, it has managed to surge above the 60 mark. Further, the MACD on the weekly charts has generated a buy signal as it has moved above the signal line. The +DMI is above –DMI and ADX. An uptick in ADX shows improvement in the trend strength.   

Overall, the stock is in a clear uptrend and sustaining above the mentioned level i.e., Rs 345-350, could trigger a fresh rally in the stock, hence, watch out!  

The stock has jumped over 100% in a year and in the last one week it has gained 17.63%.  

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