Petronet (currently at 128.65) was in downtrend since Jan 2013, it has made lower tops & lower bottoms quite few times in recent time. We can see this in below day chart of Petronet.
It was continuously coming down & tested level 106.20 in intraday & managed to closed at 115.75 that day which is great recovery for any stock in intraday. After that Petronet has started to show signs of reversal in trend & broken out of downtrend line.
It’s now 8 days over that Petronet is well above this trend line, volumes are also increased after stock has moved up. On the other hand, OBV(On Balance Volume) is giving clear indication that stock is moving up with good volumes.
RSI(14day RSI) is very much in uptrend much before when stock was making new lows, this is what we can say divergence between RSI & stock price. It confirms relative strength of Petronet is good. RSI is also making higher tops & higher bottoms which is again a positive sign. RSI is currently at 61.80
When we draw a Fibonacci retracement by joining point 106.20 to 133.60, we get levels 141 & 150. These can be our targets in coming days.
Petronet is trading above all major moving averages but 200 days(200 EMA) which is currently at 133. In coming days it can be strong barrier (resistance)for Petronet.
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