Chart Check: After 18% rally in 3 months, ascending triangle breakout makes Linde India an attractive buy

economictimes.indiatimes.com:

Linde India, part of the chemical industry, has rallied by about 18% in the last 3 months to hit a fresh record high in July and the chart patterns suggest that the rally in the stock price could take the stock above Rs 5,000, a new record high. The stock rose from Rs 3,897 as on April 24 2023 to Rs 4,593 recorded on 24th July 2023 which translates into an upside of about 18% in 3 months. The stock rose more than 6% in a week.

The recent surge in the stock price pushed the stock to a fresh record high of Rs 4,859 recorded in intraday trade on 25th July 2023. The stock also gave a breakout from an ascending triangle pattern on the weekly charts. The neckline of the ascending triangle pattern was placed above Rs 4,200 levels which happened in June 2023 and since then the stock has been trading above this level.

Ascending triangles are also known as continuation patterns and a breakout from the rising trendline suggests that bulls are in control. Also Read On the daily chart, the stock witnessed a range breakout. The stock moved in a narrow range where Rs 4,600 acted as a stiff resistance and on the downside Rs 4,200 levels acted as a support.

The stock closed at Rs 4,582 on 24th July 2023. «Linde India has experienced a smooth correction after April 2022, avoiding the formation of lower highs and lower lows. This suggests a positive undertone in the trend,» Omkar Patil, Technical Research Associate at GEPL Capital, said.