Hello Traders,
The markets have been volatile off late and as you know traders love volatility, because high rewarding trading opportunities are generated in volatile markets only.
While looking at this stock you can see the stock has been correcting a bit after it made a high of 925 on 16th august 2022, but the stock is also in making traders nervous since it trying to touch 900 and 800 quite a few times in two weeks.
Whats in for this stock?
Is there any Trading opportunity? Can it really go to 1008 & 1143 from 803 ?
High Risk High Reward Trading Opportunity
Mahanagar Gas Limited View: Bullish
In the above chart,
- its clearly visible that the stock has formed a A Symmetrical triangle pattern with the two trend lines TL 1 & TL 2
- The stock has been in the uptrend ever since it has seen a breakout after crossing the TL 2
- Currently the stock is trading at lower side of the of the current swing between 800 – 900
- Offerring a wonderful trading / investing opportunity to get in with a very small & tight stop loss of 783 below the low earlier swing
- Now considering the current swing and the volatile but trading in the range of 100 points it seems the stock still has much potential to rescale the level of 900 and rise above that and touch the two crucial Fibonacci levels see below chart
- If MGL holds above continues to maintain the stop loss level of 783 and sustains above 800 & regain 900 levels in 1 or 2 weeks then there is high potential in MGL to successfully touch 1008 which is 161.80% retracement of the fall from 925 to 790
- Once the stock sustains above 1008 & sail through few intermittent corrections then there is a probability it can go further higher and test 1143 in the coming 6 odd months to touch 1143 which is 261.80% retracement of the current drop from 915 to 790
What do you think that stock will do in coming time do comment…
Trading Mantra :
“Fundamentalists who say they are not going to pay any attention to the charts are like a doctor who says he’s not going to take a patient’s temperature” ~Bruce Kovner
