The stock of Petronet LNG surged 3 per cent with above average volume on Thursday, breaking through a key resistance at Rs.185 as well as its 200-day moving average. Investors with a short-term perspective can buy the stock at current levels. After retracing 50 per cent Fibonacci retracement level of its prior uptrend, the stock found support in Rs.160-165 bandthis April. Since then, the stock has been on a medium-term uptrend.
It was finding difficulty in breaching the key resistance level at Rs.185 in late May and again in early June. But, the stock has decisively breached it this time, adding strength to the medium-term uptrend. The stock hovers well above its 21- and 50-day moving averages.
The short-term outlook is bullish for the stock. It can rally further and reach the price target of Rs.197 and Rs.201 in the upcoming sessions. Buy with a stop-loss at Rs.185.5.
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