After a strong breakout from the consolidation pattern, know the targets for Gujarat Gas here!

GUJGAS has registered a breakout from its 1-month consolidation pattern.

The stock of Gujarat Gas Ltd has soared over 6% during the initial hours of Monday’s trading session. With this, it has registered a breakout from its 1-month consolidation pattern. It traded in a range of Rs 440-470 but today, it has hit a high of Rs 482, accompanied by huge volume. The volume tends to be greater than the 10-day and 30-day average volume. Interestingly, the stock has retraced over 38.2% retracement level of its prior downtrend. It is currently above its 20-DMA and 50-DMA. After it hit its prior swing low level of Rs 407, the stock is now about 20% above this level. Thus, the stock is expected to recover from here on.

Moreover, the technical parameters also indicate an improvement in the stock’s strength. The 14-period daily RSI (57.78) is above its prior swing high and shows improving strength. The MACD has bounced above its signal line and indicates an upside. Meanwhile, the OBV continues to remain elevated and shows good volumetric strength. The +DMI is above the -DMI. The Elder Impulse system has charted a bullish bar and shows fresh interest in buying this stock. The TSI and KST indicators also show an improvement in the stock’s performance. In a nutshell, traders can expect a good upside in short term.

As per the price structure, one can expect the stock to test the Rs 495 level of 50-DMA, followed by the Rs 515 level. For the downside, one needs to watch the level of Rs 450, as a fall below this level can induce weakness. It provides good trading opportunities for traders and should include it in the watchlist to track its further development.

Gujarat Gas is engaged in the natural gas production, supply, and distribution in Gujarat. With a market capitalization of Rs 30500 crore, it is one of the strong growing companies in its sector.