GAIL India, PSU stock at a support zoneTwo scenarios .
1. The stock has made H &S pattern. The pattern must break the historical support and retest the area for confirmation showing bear grip.
2. The area of confluence + Strong Q1 results + positive global sentiments shows bullishness in stock. A rejection long wick candle validates this but the H & S pattern formed may trap investors.
3. Since the inflation is being stable (yet above RBI Std) and global recovery in Gas demand we can expect the stock to move upwards given that GAIL is a fundamentally strong PSU having a very good dividend yield.
4. My view is Long, that the stock has made a insider candle at the area of confluence in DAILY TF, with targets specified in the charts.
5. Safe traders can wait for a good bullish candle breaking prev week high as confirmation in weekly TF for long positions by keeping the weekly low as stop-loss and Vice-versa.
Aggressive traders can enter with a stop loss below the support zone @ 123/119 and go long for targets above 150 and 170 and beyond in long term.
Note:
This idea is purely on observation made by me, this is not a recommendation or a call.
please do your analysis and share your opinion in the comment box below.
Healthy discussion and inputs are welcomed with thanks
