Technical Analysis of Indraprastha Gas Ltd.
BUY at CMP of 264.50 for SHORT TERM* target of 288.00 & LONG TERM* target at 325.00-333.00
Year 2018 has remained negative for majority of the scrips and IGL was no exception to this list of scrips, which has witnessed the downtrend. The year started with the formation of a long bearish candle in the month of January 2018 and continued the trend till the month of June, and showed a strong recovery in July. The scrip failed to continue the recovery phase and showed the downtrend for the months of August and September. The month of December started with a recovery phase and showed bullish phase.
Drawing a fibo from swing low to swing high and using all major indicators, the scrip has taken support of 61.8% fibo level, 30-day Simple Moving Average line is exactly coinciding with the 61.8% fibo level, indicating a strong support zone for the scrip and recovery phase to continue with a heavy upside.
Major indicators, such as, RSI at the levels of 54.49 with flat to positive divergence, ADX at the levels of 49.02, with +DI line taking a slightly upside move as compared to the -DI line, and MACD in the positive territory indicates the upside to take lead and the upside move to continue for the year ahead.
On a weekly chart, the scrip formed a bearish candle on the price chart in the month of January. The scrip remained downtrend for the majority part of the year with some pull backs in the weekly candle of July and October. The Month of December shown some pull backs.
The weekly chart of December has formed higher high bullish candles indicating an upside move for the weeks ahead. Drawing fibo from swing low to swing high, the scrip has taken exactly the support of 61.8% fibo level at the price of 241 and shown recovery.
Major indicators, such as, RSI at the level of 49.82, with a positive divergence, MACD showing entry in the positive territory, and ADX at the levels of 14.76 with +DI line showing a pull back indicating upside move to continue and the first resistance to be at the levels of 78.6% fibo of 287. Once the price closes above this level, the next upside will be at the levels of 325-333.
*SHORT TERM indicates a duration of one month and LONG TERM indicates 3 months.