Petronet: Trend Decision Build-up
Updated
At large the stock is in a continuation phase currently and is expected to consolidate further given its possible pennant structure. However, the supply zone has been tested multiple times in the last 7 trading sessions combined with higher lows at each test. This may cause an untimely break in the following trading session which in turn will provide a good bullish momentum. On the other hand, if the intraday support above the demand zone is breached upon swing failure at the currently marked resistance, the stock will surely present a scalping opportunity at the bare minimum. Additionally, any test in the demand zone is likely to continue its present bearish trend.
The dual indecisive but extreme technical possibilities are also mirroring the fundamental image of the company's underlying commodity i.e. energy. Hence, it provides an additional conviction to this idea.
The dual indecisive but extreme technical possibilities are also mirroring the fundamental image of the company's underlying commodity i.e. energy. Hence, it provides an additional conviction to this idea.
Trade closed: target reached
Our printed study's supply zone has been breached and even though the market had tested both ends, we have got a unidirectional trade as per the retained rationale.
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