Breakout stocks of the day: Astral and Archean Chemical Industries

Astral and Archean Chemical Industries are identified as potential bullish stocks based on technical analysis. Both stocks have displayed promising technical patterns, including price volume support and a potential to breakout. Currently trading at Rs 2,081.95 and Rs 813.90, respectively, their price structures align with positive signals from technical indicators like RSI and ADX, suggesting continued upward momentum.

Astral Ltd 

Daily chart of Astral Ltd

Astral Ltd is currently displaying strong bullish momentum on the daily chart after the breakout; the stock price trading with momentum with a sustenance sign today. If the stock manages to close above the 52-week high by support of the good volume, the stock price may start a strong momentum move in the next coming trading sessions. Yesterday’s volume highlighted active buyer participation with above-average daily volume today.

Monday’s trading session began at Rs 2,094 and reached a peak of Rs 2,124.45. After opening the stock has successfully surged towards the day high on the chart, indicating a potential continuation sign of the long-term uptrend.

The current stock price is trading with an indecision candle probably as a sign of sustenance, driven by increased volume during a particular trading session, indicating that investors are interested in up moves. In the coming time, the stock price may show momentum as it is bouncing from the 200-day EMA as well, it may set the stock up for a stronger positive trend shift, and the accumulated volume suggests further growth in the near future.

On the RSI chart, the relative strength index is trading in the bullish zone with gaining strength, and ADX trading at 19 indicates normal directional strength, favouring normal movements on either side. In the event of a retracement, it is essential to monitor key support levels, particularly at Rs 1,920. The minor upper resistance is uncertain, and if the stock starts back-to-back closing above 52-week high, then the stock may consistently trade above current levels.

Astral Ltd engages in the manufacturing and marketing of plumbing and piping systems for both residential and industrial applications.

Archean Chemical Industries Ltd 

Daily chart Archean Chemical Industries Ltd

Archean Chemical Industries’ current stock performance is characterised by a promising technical setup, trading at Rs 813.90 and has the potential to continue its strong uptrend, accompanied by a significant increase in trading in the last 5 days. Currently, the stock price is strongly up after the breakout of consolidation of the base.

Starting at Rs 789 on Wednesday, the stock reached an intraday high of Rs 829. The current upsurge of the day was notable as the volume also picked up.

The stock has given the breakout and is trading near its 52-week high, indicating buying activity, at the same level volume is picking up this week with price movement. After reaching its all-time high the stock witnessing a strong uptrend and the same is anticipated in coming trading sessions, following sustained levels near Rs 800. The current market action is supported by a surge in volume on up days and dry volume on down day for the stock.

The relative strength index (RSI) recently traded in a bullish range at 81.51 suggesting the potential for a significant upward movement in the stock price with major whipsaws as the RSI entered into the overbought region, particularly as it continues to trade above this level. The ADX (Daily), currently at 30, indicates high directional strength. The level at the 50-day EMA serves as a crucial indicator for corrective movements after, and the overall market structure favours traders if the stock consistently trades above major moving averages.

Archean Chemical Industries Ltd. produces sulphate of potash, gypsum, bromine, and several industrial chemicals through the conversion of naturally available marine mineral deposits.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.