Trending stock for the day: Rashtriya Chemicals and Fertilizers Ltd

The stock of RCF is extremely bullish today and has surged over 9% on Tuesday.

On the technical chart, the stock has formed a strong bullish candle and is trading at a day’s high. After a slight gap-up, the stock continued to surge higher and is currently trading near its short term resistance level of Rs 89.

Moreover, for a few weeks, the stock is trading in a broad range of Rs 70-89. It received strong buying interest at lower levels today which led to a massive surge in its stock price. This can be attributed to the huge volume recorded today which is above the 10-day and 30-day average volume, thus demonstrating larger trading activity. Moreover, since yesterday’s low of Rs 78.75, the stock has gained over 14%.

The technical parameters also show improved strength in the stock. The 14-period daily RSI has entered the super bullish territory and is above the prior swing high. Moreover, the trend indicator ADX is also pointing northwards and is above 22, thus indicating a strong uptrend of the stock. The MACD stays bullish while the OBV has hit a higher high, indicating a strong trend from the volume’s point of view. With today’s massive surge, the Elder Impulse system has signalled a bullish view for the stock.

On a YTD basis, the stock has generated over 17% returns and has thus outperformed the broader market and most of its peers during the period. Moreover, the past one-month performance stands at about 25%. Considering the above points, the stock is expected the break the upper limit of Rs 89 and should trade higher, it has the potential to test the levels of Rs 95, followed by Rs 100 in the short to medium term. Moreover, it is a good candidate for swing trading. Short term traders can expect decent gains from this stock in upcoming days as validated by technical analysis.

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