Short Term trading buy with 16.2% gain potential

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Pee Vee
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Short Term trading buy with 16.2% gain potential

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Petronet LNG Ltd - BUY
CMP: Rs 396-402, 3 Months Target: Rs 460 Stop Loss: Rs 364, Upside: 16.2%

“Symmetrical triangle breakout”

Petronet LNG Ltd is trading in a strong higher top higher bottom chart structure and is on the verge of breaching its lifetime high of Rs 410.90. Analyzing the longer time frame on the weekly chart, the stock has given a symmetrical triangle breakout and on monthly charts, it has given a continuation pennant pattern breakout. Tracking its recent F&O activity, the stock is continuously forming long positions with a rise in open interest and cost of carry, indicating a continuation on this uptrend up to Rs 460 levels which coincides with its 161.8% retracement from its previous trading range of 84 points. This suggests Petronet LNG is all set to resume its northbound journey. The stock has a potential first target of Rs 460, translating into 16.2% returns.

IIFL
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