GAIL - EXPECTING A BOUNCESymbol - GAIL
CMP - 158.10
GAIL Ltd. has been following a downward trend over recent months, with the overall technical structure remaining bearish. However, the stock has recently reached a crucial support zone, which lies between the 154-162 range, a level that has held strong since January 2024. This area serves as a key support zone, and it could offer the stock a potential bounce from its current bearish trend.
The stock is currently forming a rounding top pattern, a classic bearish formation that indicates a possible continuation of bearish trend at current levels or even trend reversal. Despite the overall bearish pattern, the price is consolidating near this important support level, which increases the probability of a bounce. While a short-term upward move is possible, the stock may resume its downtrend after this bounce.
In the short term, the trend is still slightly bearish. The stock has encountered some selling pressure near its support zone but is testing the resilience of this critical level. For me, The current market price around 158 offers an opportunity for a long position. It may be prudent to add more to this position as the price moves toward 153-152, while keeping a stop loss at 148 to manage risk.
However, if the stock breaks below 150 and sustains below this level, the current bounce scenario would be invalidated, and the stock would likely face further selling pressure, accelerating the downtrend.
Disclaimer - Do not consider this as a buy/sell recommendation. I'm sharing my analysis & my trading position. You can track it for educational purposes. Thanks!
