Gail – 354

At current price Gas Authority of India Ltd is trading at 354.

Technically, stock is trading very close to its Major 200 Day Simple Moving Average (DSMA) since from few days.  Momentum oscillator MACD is trading with Bullish Convergence, whereas ADX has reached 19 levels, which indicates that momentum has not picked up from last few days.

GAIL - 354

                                                            GAIL – 354

I see here a buying opportunity, as MACD is about to reach “0” line from below, and I expect momentum to pick up gradually.  Also stock is just trading below 200 DSMA, so as momentum will pick up stock will shoot up.  On flipside, if this hypothesis goes wrong than, it is very much possible that stock will move down quickly, and to support that fact we can see Death Crossover taking place (50 DSMA crossing 200 DSMA from above).

Keeping above things in consideration, I advise to initiate long above 360 level keeping stop below 349, eventually I see prices to test 385+ levels.  Risk-averse traders can wait for close above 360.

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