Chemical Stock Breaks Out of Ascending Triangle With Strong Volume - Fresh Upside Ahead?

Stock to Watch: Neogen Chemicals (NEOGEN)

Neogen Chemicals Breaks Out of Ascending Triangle

Neogen Chemicals has been forming an ascending triangle on the daily chart, with the Rs 2,330– Rs 2,345 zone acting as a firm resistance and a rising trendline holding price up from below. That resistance has now been taken out, with the stock breaking above it on a strong bullish candle to close at Rs 2,388.90. The move is backed by higher volume too, which points to fresh buying interest and gives the breakout some real strength.
 

Fibonacci Levels Point Towards Higher Targets

This breakout has also pushed the stock past the 50 per cent Fibonacci level near Rs 2,343, with the 61.8 per cent level sitting around Rs 2,402 as the next marker. Beyond that, Rs 2,489 comes in as the next important resistance on the Fibonacci scale, followed by the 100 per cent level near Rs 2,597. On the downside, the Rs 2,330– Rs 2,345 zone should now work as immediate support, with the rising trendline offering extra cushion just below it.

EMA Setup and RSI Keep the Trend Positive

The stock is holding above all its key EMAs, which keeps the broader trend looking solid. The shorter-term averages are placed above the longer-term ones, and the way the EMAs are stacked up supports the idea that momentum can continue. RSI is around 68, showing strong buying interest, though it's getting close to overbought levels now. Taking it all together — the breakout, the jump in volume, the EMAs lining up well, and RSI running strong — the overall setup still looks bullish for the stock.

Disclaimer: The article is for informational purposes only and not investment advice.