Akzo Nobel stock is pretty interestingly poised on the chart and offers exciting opportunity.
Let's look at the weekly chart of Akzo Nobel
As you can see in the weekly chart above: the stock has been trading sideways with 1220 as support and 1550 as resistance since September 2014. Now, even 100-week moving average has done catch up with the sideways action and today's bounce makes the stock very interesting on the chart for good upside move.
Why this Chart can be trusted in a troubled market?
Remember stocks of the same sector move together. Just look at the charts of Asian Paints, Berger Paints and you will realize how bullish they look. Here's Berger Paints stock daily chart
Also, Akzo Nobel is the cheapest stock in the lot and has done nothing for years now. This stock is also the beneficiary of low crude prices. Hence at a time when investors are looking for "low Crude beneficiary" ideas - Akzo Nobel looks interesting. Having said that - you never know. We are in a tough market environment where everything is getting sold and hence this stock might also not surprise. So, every investment idea should have a stop loss to begin with. In case of Akzo Nobel, that should be below 1200 on closing basis. Please note - risk of sell off is very high right now.
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers