Galaxy Surfactants gives inverted Head and Shoulders breakout

The stock of Galaxy Surfactants Ltd has provided a breakout from the inverted head and shoulders pattern on the weekly time frame. This breakout was confirmed by the more than 50-week average volumes.

The inverted head and shoulders pattern occurs after an extended downward move. It represents a possible exhaustion point in the market where possible reversal may occur.

Currently, the stock is trading above its 20-day EMA (1248.90), 50-day EMA (1215.25), 100-day EMA (1179.40) and 200-day EMA (1182.50), which indicates a medium to long term uptrend. The leading indicator 14-period weekly RSI is in bullish zone and weekly MACD also stays bullish as it is trading above the zero line and signal line since last 19 weeks. The weekly stochastic oscillator is also suggesting some bullish strength as %K is above the %D.

Going ahead, the stock has immediate support in the zone of Rs. 1245-1230 as the 20-day EMA and 34-day EMA is placed in that region, while the major support is placed in the zone of Rs. 1190-1180 as it is the confluence of 200-day EMA and the upward sloping trendline support. On the higher side, any sustainable move above the level of Rs. 1320 is likely to open up gates for further rally towards the levels of Rs. 1370, followed by Rs. 1410.