Sunday, May 15, 2022

Double Bottom Breakout On Gujrat Gas Ltd.

Friends, nowadays the market situation is very panic and volatile. Short-term stock traders are not able to make a profit and getting panic. The main questions are What to do in this panic market? Where to invest? The answer is short term traders should have to wait for some days or they have to prefer a large-cap stock only with small risk. Otherwise, they have to shift from short to long term with partial accumulation.

In this choppy market, we found one stock that is looking strong on multiple time frames. The stock is Gujrat Gas Ltd which has strong fundamentals and the week + day chart has given a U-turn signal.

Month: In August 2021 stock price has made lifetime high and showed a reversal. From highs, the stock has given a correction of 25-30% and then taken rest for four months. Due to the Russia-Ukraine war, Natural Gas prices are increased and gas stocks are broken support. Gujgas Ltd came into the previous demand zone and taking a turn is a good sign of reversal i.e. Morning Star.

Week: On the medium-term chart, the stock has taken support from 500 levels and given a nice breakout with volumes. There is a Double Bottom confirmation on the chart. Next supply zones are around 610/650/700 before going to these levels if we get a dip till 550-540 then good levels to enter.

Day: On a daily chart, the stock has given a breakout after quarterly results and if we look at the results then it's good than the expectation. Now the stock is ready to move towards its 200 DMA and the stock has good fundamentals.



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.

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