Chennai Petroleum reaches near trendline resistance

Chennai Petroleum Limited reached near its downward sloping trendline formed by connecting highs from January 2018, on the weekly time frame. This coincides by the stock's long-term moving average, i.e. 200-week exponential moving average, which is currently placed at 283.20 level. After registering its 52-week low, the stock is trading in a range for the last nine weeks along with low volumes, which indicates it is just a pull-back and the original downtrend is likely to resume soon.

The 14-period RSI on the daily time frame made a couple of attempts to cross the 60 mark, however, it failed and slipped lower. Currently, Chennai Petroleum is quoting around 57.95. Other indicators and oscillators are also in consolidating in a range. On daily time frame, the stock is trading below its long-term moving average, i.e. 200-day EMA.

For any further upward momentum, Chennai Petroleum needs to form sizeable bullish candle along with strong volumes above the trendline resistance.