IGL forms sizeable bullish candle above trendline resistance

Indraprastha Gas Limited (IGL) is one of India's leading natural gas distribution companies. Established in 1998, the company operates primarily in the National Capital Region (NCR) of New Delhi. The stock has recently given downward sloping trendline resistance breakout and formed sizeable bullish candle above trendline resistance, on the daily scale. The breakout was supported by justifiable volumes.

The RSI on the daily chart is in a rising trajectory and trading above its 9-day average. According to MACD analysis, on the daily time frame, there is a centreline bullish crossover, which is a positive signal. The stock is trading above its crucial long-term moving average, i.e., 200-day EMA and it is in rising mode.

For any immediate decline Rs. 265 is likely to act as short-term support as it is the confluence of 21-day exponential moving average. While on the upside, the stock is likely to face resistance at Rs. 288, followed by Rs. 294.

On Friday, the stock of IGL closed at Rs. 277.85 per share, up by 1.55 per cent. The stock opened at Rs. 274.60 per share and hit an intraday high of Rs. 279.20 and a low of Rs. 273.05 per share on BSE.