Petronet LNG gives Ascending Triangle pattern breakout

The stock of Petronet LNG Ltd has given ascending triangle breakout on a daily scale. This breakout was confirmed by the above 50-day average volumes. Additionally, the stock formed a sizeable bullish candle on the breakout day, which adds strength to the breakout.

The major trend of the stock is bullish as it is trading above its weekly pivot and above its long-short term moving averages, i.e. 20-day, 50-day, 100-day and 200-day EMAs and these moving averages are exactly in an ascending order, which suggests that the trend is strong. The leading indicator 14-period daily RSI is currently quoting 69.72 and it is in a bullish zone. The daily stochastic oscillator is also suggesting some bullish strength as %K is above the %D. The MACD is trading above the zero line for the past 13 trading sessions. The histogram is suggesting that the momentum is picking up.

Going ahead, the stock has immediate support in the zone of Rs. 243-241 as the short-term 13-days EMA and 20-day EMA is placed in that region, while the major support is placed in the zone of Rs. 235-230 as it is the confluence of long term 200-day EMA and upward slopping trendline is placed in that region. On the higher side, any sustainable move above the level of Rs. 260 is likely to open up gates for further rally towards the levels of Rs. 270, followed by Rs. 275.

On Tuesday, the stock of Petronet LNG closed at Rs. 258.60 per share, up by 5.14 per cent. The stock opened at Rs. 245 per share and hit an intraday high of Rs. 259.70 and a low of Rs. 245 per share on BSE.