GSPL gives trendline breakout

The stock of Gujarat State Petronet Limited (GSPL) has given downward sloping trendline breakout on the daily scale formed by connecting swing highs from August 8, 2018. The breakout was supported by relatively higher volumes. Additionally, the stock formed a sizeable bullish candle on 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. From a momentum oscillator perspective, the 14-period daily RSI is currently quoting 63.83 and it is in the bullish zone. The stochastic oscillator is also suggesting some bullish strength as %K is above the %D.

Going ahead, the stock has strong support in the zone of Rs. 196-194, while on the higher side, the major resistance is placed in the zone of Rs. 207-211 level.

On Monday, the stock of Gujarat State Petronet closed at Rs. 204.55 per share, surged by 3.86 per cent. The stock opened at Rs. 197 per share and hit an intraday high of Rs. 206 and a low of Rs. 196.55 per share on NSE.