J B Chemicals & Pharmaceuticals give trendline breakout

The stock of J B Chemicals & Pharmaceuticals Limited has given a downward sloping trendline breakout on the weekly time frame, formed by connecting swing highs from February 2020. The breakout was supported by strong volumes. Additionally, the stock formed a sizeable bullish candle on the breakout day, which adds strength to the breakout.

As the stock is trading at an all-time high level, it is above all the short and long-term moving averages. The stock is meeting Mark Minervini’s trend template. It is trading above 40, 30 and 10 weekly averages and all of them are trending up. At the same time, they are in a desired sequence. The stock is also meeting Daryl Guppy’s multiple moving averages set-up rules as it is trading above both the short and long-term moving averages. The leading indicator, 14-period weekly RSI, is currently quoting at 69.47 and it is in a bullish zone. The weekly MACD stays bullish as it is trading above its zero line and signal line.

Going ahead, we expect the bias to remain positive as long as the stock sustains above the current week’s low of Rs 541.65 level. On the higher side, the level of Rs 708 would be seen as the next resistance zone for the stock.

On Friday, the stock of J B Chemicals & Pharmaceuticals closed at Rs 645.25 per share, surged by 5.98 per cent. The stock opened at Rs 620 per share and hit an intraday high of Rs 650 and a low of Rs 613.60 per share on BSE.