Technical Analysis

From the ring: Petronet LNG (₹266.8): Buy

Yoganand D | Updated on September 01, 2019 Published on September 01, 2019

 

Investors with a medium-term perspective can buy the stock of Petronet LNG at current levels. The stock had skyrocketed 11.8 per cent last week, decisively breaking above a key long-term resistance level of ₹250. This breakthrough strengthens the bullish momentum and underpins the medium-term uptrend that has been in place since the stock took support at ₹208 in early February this year.

Short-term trend is also up for the stock. It trades well above the 50- and 200-day moving averages. After struggling to break above the key barrier at ₹250 from this March, the stock eventually breached it last week. There has been an increase in daily volume over the past two weeks.

 

 

Though the daily relative strength index features in the overbought territory, the weekly RSI has just entered the bullish zone from the neutral region, indicating bullishness over the medium term. Besides, the daily and the weekly price rate of change indicators hover in the positive terrain, implying buying interest. Any near-term corrective decline can be considered a good opportunity for investors with a medium-term view to buy the stock.

Overall, the medium-term outlook is bullish for Petronet LNG. It has the potential to trend upwards and reach the price targets of ₹290 and ₹310 with a minor pause at around ₹290.

Traders with a medium-term stance can buy the stock with a stop-loss at ₹245.

Published on September 01, 2019
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