🧪 Chemcon Speciality Chemicals Ltd. – RSI Divergence, but Facing Exhaustion

🔹 Price Action Current price: ₹226.82 (+8.88%). Stock has been in a long-term downtrend since 2021 highs. Recently rebounded from ₹188 support zone, forming higher lows. Now approaching resistance near ₹235–₹240, which aligns with both weekly and monthly exhaustion zones. 🔹 Technical Observations Bullish RSI Divergence: Price made lower lows, but RSI made higher lows → early sign of strength. Rising Support Trendline: Price respecting an upward sloping line from recent lows. Exhaustion on Monthly Chart: Bigger time frame still shows pressure; resistance around ₹260–₹280 is strong. Volume expansion visible during bounces, showing selective accumulation. 🔹 Key Levels Support: ₹188 → ₹160 (major base). Resistance: ₹235 (immediate), then ₹260 → ₹306. Sustaining above ₹260 will confirm a larger trend reversal. 🔹 Indicators RSI ~56: Bullish divergence on weekly, but still below overbought. Momentum: Improving but not yet a confirmed reversal. Volume: Strong green candles on support levels show buying interest. 🔹 Strength & Risk ✅ Bullish RSI divergence (weekly). ✅ Rising support trendline with buying volume. ❌ Facing stiff resistance zones at ₹235–₹260. ❌ Monthly chart still shows exhaustion, meaning upside may stall near resistance. 🔹 Outlook Short Term: Likely consolidation between ₹188–₹235. Medium Term: Bullish only above ₹260; then targets ₹300–₹320. Strategy: Watch for breakout above ₹235–₹240 with volume; accumulate only if sustained above ₹260. 📢 Disclaimer: This is educational analysis, not investment advice. 🧑‍💼 Rajneesh Sharma – SEBI Registered Research Analyst (INH000020332).