Stock Radar: IGL on verge of a breakout from Triangle pattern; should you buy?

A close above 460-470 levels will open room for the stock to head towards the 500 level, suggest experts. Short-term traders with a high-risk profile can keep the stock on their watchlist.

The stock soared to a record peak of Rs 604 on September 14, 2021, but struggled to sustain the momentum. Drawing a line connecting the peaks of September 2021, May 2023, and April 2024 would reveal a triangle-like formation.

A triangle pattern in is a price formation characterized by converging trend lines, forming the shape of a triangle on a .

In a Symmetrical Triangle, this pattern occurs when the slope of both the lines are converging, forming a triangle with roughly equal highs and lows.

It suggests a period of consolidation before a potential breakout, which could be in either direction. A close above 460-470 could potentially lead to a on monthly charts.

In terms of price action, the stock is trading below 5,10 and 20 DMA but above 30,50,100, and 200 DMA on the daily charts.

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The daily Relative Strength Index (RSI) is placed at 53. below 30 is oversold and above 70 is considered overbought, data showed.

“IGL has been a consistent performer within the gas distribution space. It has been gradually inching higher since 2015, with marginal corrective phases in between wherein the pace of decline usually remains moderate,” Ajit Mishra, SVP - Research, , said.

“It has been consolidating in a triangle pattern for nearly 3 years now and currently trading closer to the upper band of the same. Indications are in favour of a potential breakout soon,” he said.

“Traders can accumulate the stock in the range of 450-460 for a possible target of Rs 510 in the next 1-2 months and a stop loss can be placed below Rs 435 on a closing basis,” recommended Mishra.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the )