BullishLine

Indraprastha Gas: Breakdown or potential rise ?

BullishLine Updated   
NSE:IGL   INDRAPRASTHA GAS
Hello guys I am back with another Interesting Analysis.

This time we will discuss about Indraprastha Gas Ltd. in a very easy to understand and end of the section I will reveal my personal opinion on this stock.

Current Chart Pattern:
Currently, the stock is in an uptrend, following an ascending parallel channel pattern. When we examine the daily timeframe, it's evident that the stock has been consolidating within this pattern for the past 1.5 years.

Previous Price movement:
Looking at the weekly timeframe, the stock was previously moving in a rising wedge pattern. However, in 2021, it experienced a breakdown and underwent a correction of 50%.

Current price movement.
>>Since that decline, it has initiated an uptrend movement while forming the current channel pattern.
>>Recently, the stock experienced a 15% decline again from its peak and moved outside of its parallel channel pattern.

My Commentary on "will it fall or Rise".

So, When we look at how this stock behaved in the past, we see that after big drops, it often bounced back strongly. This time, the stock has fallen below its usual support area, which seems like a normal pullback. Interestingly, it found support at Fibonacci S3 (420 level) and started rising again.

Now, Looking at its Financial data everything looks great, The company is currently undergoing its highest-ever sales and profits.

To cut the Long story short, I'm still positive about this stock, considering this level as good opportunity. But when it comes to entry it is better to wait for a strong confirmation. Ideal entry would be when it breaks the 450 level with comparatively big green engulfing candle, we can take a small stop loss at 415 level to capture atleast 25%.

Do consider pressing the boost buttonπŸš€πŸš€, It helps me bring more interesting analysis. And if you've any question and suggestion please feel free to post in comment section.

Note: This is for informational purposes only. Do your own research before investing.
Trade active:
As I anticipated, it has performed exactly as expected. It is currently trading up by 10% from our analysis point. Obviously, we cannot consider this as an entry level. I started accumulating when it re-entered its previous trend line.

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