Chart Check: 40% in 3 months! JB Chemicals likely to surpass 3000 levels to hit fresh record highs; time to buy?
JB Chemicals & Pharmaceuticals Ltd, part of the pharma industry, has rallied more than 40% in just 3 months which pushed the stock to a fresh record high in August 2023, but the rally may not be over yet, suggest experts.
The stock rose from Rs 2064 on May 26th, 2023 to Rs 2921 recorded on 28th August 2023 which translates into a rise of over 40% in 3 months. The stock hit a record high of Rs 2935 on 28th August 2023.
Most of the technical indicators suggest that the rally is likely to continue.
Hence, short-term investors can buy the stock for a possible bounce towards 3000-3300 levels in the short-medium term, suggest experts.
The stock is making higher highs and higher lows on the weekly charts, which is a bullish sign. It recently recorded a breakout from an Inside Bar pattern.
In terms of price action, the stock is trading well above most of the crucial short- and long-term moving averages such as 5,10,20,30,50,100 and 200-DMA on the daily charts.
The recent momentum has pushed the stock into an overbought territory; hence, some consolidation could be on the cards.
The daily Relative Strength Index (RSI) is at 70.7.
RSI above 70 is considered overbought. This implies that stock may show pullback, Trendlyne data showed.
The daily MACD is above its center and signal Line, this is a bullish indicator.
“JBCHEPHARM's stock is trending within an ascending channel, marked by sustained higher highs and higher lows, denoting a bullish sentiment,” Omkar Patil, Technical Research Associate at GEPL Capital, said.
“A recent breakout from an Inside bar in the past week suggests an extension of the ongoing upward trajectory. Concurrent volume surges underscore amplified demand for the stock,” he said.
“The 12 Weeks EMA has
