Published March 12, 2019
We have been watching cement stocks for a while and were waiting for them to give a proper breakout. And here it comes. Almost all cement stocks are establishing bottoms in the medium term charts and a few have given price-volume breakouts in the shorter time frame.
Of the four cement stocks that we have mentioned here today, JK Cement looks very similar to The India Cement Limited chart (differs in volume), and ACC Limited gives a similar feel as Ambuja Cements Limited.
JK Cement Limited (JKCEMENT.NS) Close: 827.05
JK Cement Limited has broken out of the falling trend channel in the medium term and has given buy signals from double bottom and rectangle formations. The stock has initiated a buy in the long term chart as well, from a double bottom formation.
The price has broken out of resistance levels on few occasions and now there is support around 815 and 750 levels. Resistance as seen in the medium term chart is around 1000 rupees. Hence reward to risk is favourable at 2.3.
Volume tops and volume bottoms correspond well with tops and bottoms in the price. Volume balance is also positive, which strengthens the stock. RSI above 70 shows that the stock has strong positive momentum in the short term. The stock is overall assessed as technically positive in the short to medium term.
Recommendation one to six months: Positive
After being in a downtrend channel for over a year, The India Cement Limited stock has given a breakout and is now above its resistance around 100 rupees. Further upside is expected. The stock has support between 97 and 84 rupees in the short term. There is resistance further up around 127 and 163 rupees.
Volume balance is also positive, which strengthens the stock. RSI above 70 shows that the stock has strong positive momentum in the short term. This indicates that the optimism among investors is high and that buy interest is increasing, thus the price is expected to continue to rise. The stock is overall assessed as technically positive in the short to medium term.
Recommendation one to six months: Positive
The ACC Limited stock has given a breakout through the ceiling of the falling trend channel and the double bottom formation at the same time around 1540 rupees in the medium term. There is resistance around the 1660 level in the medium term and 1730-1850 in the longer term chart. A break and close above that level may initiate fresh buying and the stock may go higher. In the short term there is support around 1513 and bigger support around 1425 rupees.
The volume balance indicator is positive and RSI is above 70. These parameters support the rise in stock price. The stock is overall assessed as technically positive for the short to medium term.
Recommendation one to six months: Positive
Like suggested earlier, this chart is very similar in its feel to the chart of ACC Limited in all time frames.
Support in the stock is around 227-215 rupees and resistance is at 242 and 260 levels.
Recommendation one to six months: Positive
The analyses are based on closing price as per March 11, 2019. Maintaining proper stop loss is always recommended.
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Investtech guarantees neither the entirety nor accuracy of the analyses. Any consequent exposure related to the advice / signals which emerge in the analyses is completely and entirely at the investors own expense and risk. Investtech is not responsible for any loss, either directly or indirectly, which arises as a result of the use of Investtechs analyses. Details of any arising conflicts of interest will always appear in the investment recommendations. Further information about Investtechs analyses can be found here disclaimer.
The content provided by Investtech.com is NOT SEC or FSA regulated and is therefore not intended for US or UK consumers.