Stock at all-time high: Gujarat Alkali and Chemicals Ltd

The stock of GUJALKALI has hit a fresh all-time high of Rs 1014.50 and has surged about 8.56% today.

Last week, the stock had given a breakout from its 50-month long cup-pattern. The cup has a depth of about 80%. On the daily timeframe, the stock has formed a strong bullish candle with its open being nearly equal to its low. The stock recorded huge volume in support of today’s price action and indicates strong buying interest. The stock is at a day’s high and shows no signs to halt, and thus, the price structure is quite bullish.

The stock has performed exceptionally well in the past. In the past one month, the stock has gained over 24% while on YTD basis, it has generated about 54% returns to its shareholders. During these periods, the stock has outperformed most of its peers and possesses strong bullishness.

Several technical indicators are in line with the stock’s strong uptrend. The 14-period daily RSI (66.06) has jumped into the bullish territory and indicates strong strength in the stock. The ADX is above 30 and shows strong trend strength. The OBV is also above its prior swing high and demonstrates strong strength from the volume’s perspective. As per Guppy’s Multiple Moving Averages (GMMA), the stock is in strong bullish trend. The distance between its CMP and 200-DMA is over 50%, which justifies its bullish momentum. The Elder Impulse and KST indicate a bullish view too.

Considering the bullish price structure and technical parameters, followed by recent performance, the stock is expected to do well in the future. As per the pattern breakout, the stock can surge as much as 80% from here on in medium to long term. It has the potential to test the level of Rs 1100 in near term. Short term traders/ positional traders can expect decent gains from this stock, as validated by technical analysis.