Linde India, part of the chemical industry, has experienced a rally of approximately 18% in the last 3 months, reaching a new record high in July. Based on chart patterns, it is likely that the stock price will continue to rise and surpass Rs 5,000, setting a new record high.
The stock rose from Rs 3,897 on April 24, 2023, to Rs 4,593 on July 24, 2023, representing an increase of around 18% within 3 months. It also saw a 6% increase within a week.
The recent surge in the stock price led to a fresh record high of Rs 4,859 on July 25, 2023, during intraday trading.
The stock also broke out of an ascending triangle pattern on the weekly charts. This breakout occurred in June 2023, with the neckline of the pattern positioned above Rs 4,200. Since then, the stock has consistently traded above this level.
Ascending triangles are considered continuation patterns, and a breakout from the rising trendline indicates bullish control.
On the daily chart, the stock experienced a breakout within a range. It had been trading within a narrow range, where Rs 4,600 served as a strong resistance, and Rs 4,200 acted as a support. The stock closed at Rs 4,582 on July 24, 2023.
“Omkar Patil, Technical Research Associate at GEPL Capital, stated, “Linde India has undergone a smooth correction since April 2022, avoiding the creation of lower highs and lower lows. This indicates a positive trend.”
“In mid-June 2023, the stock broke out of the Ascending Triangle pattern, suggesting a potential continuation of the upward movement,” Patil added.
Patil further highlighted, “On the daily timeframe, Linde India’s stock price is currently trading above significant moving averages, including the 50-Day, 100-Day, and 200-Day Exponential Moving Averages (EMA). This reinforces the positive trend and supports the bullish outlook.”
Patil recommends, “Analyzing the Relative Strength Index (RSI) on the Weekly timeframe reveals a range shift, indicating rising momentum in the stock. Looking ahead, we expect the prices to continue rising towards the Rs 5,300 level with a strict stop loss at Rs 4,345, based on the closing basis.”
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
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