Can I buy shares of Petronet for the short term?
BUY PETRONET AT CURRENT PRICE WITH STOP LOSS OF RS 200 ON CLOSING BASIS.
Petronet LNG Ltd is currently trading at Rs 212.85. Its 52-week high/low stand at Rs 260/Rs 202 made on January 31,2018 and May 16, 2018, respectively. On the weekly scale, the stock has bounced from its crucial 38.20 per cent Fibonacci retracement support of its entire upward move started from the low of August 28, 2015, to its all-time high made in November 2017. Considering the daily time frame, the stock has recently given breakout of downward slopping trendline formed by connecting highs from November 2, 2018. The 14-period day RSI is quoting around 47.70 and it has recently given positive crossover. In the coming weeks, the stock is expected to touch its long term moving average, i.e. 200-day EMA which is quoting around Rs 223. On the downside, Rs 205-Rs 200 is likely act as the short term support. Hence, we suggest buying at the current price with the stop loss at Rs 200 on a closing basis.