The slope is turning bearish on the Phillips Carbon Black charts. The stock has fallen consecutively over the past four weeks. It’s down 17 percent over this period.
This fall has broken the prevailing uptrend since late March last year. The stock also made a decisive break and close below its 21-week moving average which is currently at Rs 242. Additionally, there is a double top reversal pattern visible on the chart. All this can keep the stock under pressure.
A break below the immediate support at $217 will confirm the double top pattern. Such a break would pave the way for a new fall initially to $192 – the 38.2 percent Fibonacci retracement level and eventually to $166 – the 50 percent Fibonacci retracement support.
Investors can sell 50 percent of their holdings at current levels. The 50 per cent balance can be sold on break below Rs 217 or Rs 235 if a corrective bounce is seen.