On the last trading session of the week, Nifty opened on a positive note but somehow lost strength and was dragged below yesterday’s low. Currently, it is trading near its strong trendline support zone. Meanwhile, Energy index is trading in a flat consolidating range on the daily chart and now it is trading around the higher side of this range.
Interestingly, one stock from the same sector registered a breakout of the Bullish Pennant pattern by rallying more than 10% in today’s session.
Selan Exploration Technology Ltd, a microcap company engaged in the production of crude oil and natural gas, focuses on the development of Bakrol, Indrora, Ognaj, and Lohar oilfields and the Karjisan gas field situated in Gujarat. The company was founded by R. N. Kapur on July 5, 1985, and is headquartered in Gandhinagar, India.
The debt-free company which has continuously improved Debtor days, is well placed on technical charts.
If we draw the trendline from the highs of October 11, 2022 (Rs 346.95) and February 17, 2023 (Rs 316) we’ll get the trendline of the higher side of the Pennant Pattern and trendline from the lows of December 26, 2022 (Rs 216.50) and March 29, 2023 (Rs 236.95) we’ll get the trendline of lower side of Pennant Pattern. Interestingly this lower side is supported by 200DMA which makes this consolidation healthy.
Today, the stock registered a breakout of this pattern and now trading above this trendline level as it surged more than 10% with strong volumes of more than 6 lakh which is above average for the last 60 days. Minimum possible targets of this pattern will be around Rs 400 which is nearly 35% of the higher trendline level (Rs 295).
Recently stock also registered a bullish crossover of 5-13-26 DMA and the 14-Day period RSI is also placed in the super bullish zone (75 RSI level) which indicates strong momentum. Thus, momentum traders and long-term investors can keep this stock on the radar for the upcoming sessions.