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The stock of Petron Engineering Construction surged 4.8 per cent on Thursday, breaching a key resistance at ₹147 and also the 200-day moving average. Investors with a short-term horizon can buy the stock at current levels. After a medium-term downtrend from the May 2017 peak of ₹217, the stock found support at its long-term base level of ₹125 in early August. Moreover, this long-term support has arrested the stock’s intermediate-term downtrend that has been in place from the January 2016 peak of ₹273.
Since early August low of ₹119, the stock has been on a short-term uptrend. It has conclusively breached the 50 and 200-day moving averages this week. So far the stock has gained 19 per cent this week. There is an increase in volume over the past two trading sessions.
The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI is on the brink of entering this bullish zone from the neutral region. The daily and weekly price rate of change indicators feature in the positive territory implying buying interest. Outlook is bullish for the stock. Traders can buy with a stop-loss at ₹150. Targets are ₹160 and ₹163 levels.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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