Tuesday, December 31, 2019

Chennai Petro Bottom Out On Daily/Weekly/Monthly Chart

We have identified Chennai Petro Corporation Ltd based on a monthly time frame and it has given bounce back from monthly support. The stock price is looking good on monthly, weekly, and daily charts. Let’s see multiple time frame analysis.

Technical Overview of CHENNPETRO: In the below chart, we can see there is strong support around 110 on the monthly chart and the stock has respected the same support. From the last 9 months stock has shown a big fall from 275 to 110 i.e. almost 60%. This month, after made a low of 110 stock has given closing around opening price and given confirmation of Hammer. On a weekly chart, the stock has made a base of 3 weeks and then given the signal of Morning Star. Now we will see a daily chart, on this time frame stock has taken support two times from the same levels and made Double Bottom. On this Tuesday, the stock has given a good spike and given breakout to Double Bottom. We can trade this stock as per our trading type i.e. Swing / Positional / Delivery.

If we see supportive indicators like RSI then the stock is oversold on each time frame.
Daily Time Frame: Buy from CMP 123.55 with the stop-loss of 116 on a closing basis.
Weekly Time Frame: Buy from CMP 123.55 with the stop-loss of 113 on a closing basis.
Monthly Time Frame: Buy from CMP 123.55 or on dips till 120 with the stop-loss of 107 on a closing basis.

We are expecting targets of 138/150/160. 

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Disclaimer: The contents produced here are purely for educational purposes. They should not be construed as buy/sell recommendations. I am not a SEBI registered Analyst or Investment Advisor. Readers are advised to consult their Investment advisor before taking any decisions based on the above write-up.