<<Aiii>> Stock Chart Pattern - Indraprastha Gas (An Update)

The previous update (date marked by gray vertical line on the chart
below) to the technical analysis of the stock chart pattern of
Indraprastha Gas (IGL) was concluded with the following cautionary
statements: "… there may be more selling pressure on the stock.
Partial profit booking may be prudent. New entrants should bide their
time."

The stock was trading at 310, after correcting from a peak of 374
(reached on Jan 3 '11). The correction continued till the stock price
dropped below all three EMAs to an intra-day low of 285 on Feb 25 '11.
The final leg of the spectacular bull run in the stock culminated with
a small head-and-shoulders reversal pattern that touched an intra-day
peak of 453 on Sep 7 '11.

Regular readers may be aware that barring a few exceptions, PSU stocks
are not my favourites. Most are not investment-worthy because of their
poor performances – whether due to management incompetence or
government apathy. The few that do perform well often turn sick
because the government either treats them as ATMs to withdraw cash
from, or because of decisions that give priority to politics over
economics.

Indraprastha Gas (IGL) was one such exception, because of its monopoly
status as gas supplier in the Delhi-NCR area, as well as its good
growth, low debt and strong cash flows.

Read more at:

http://tinyurl.com/mobugobu

--
Independent Investor Handbook
http://tinyurl.com/3octm2r

Ultimate Technical Analysis Handbook
http://tinyurl.com/yej8kem

How to Use Bar Patterns to Spot Trade Setups
http://tinyurl.com/yhszv6t

www.groups.google.com/group/Aiii

Disclaimer
AIII group is solely meant for healthy discussions among fellow members.

Moderators request all members to conduct their online affairs with full regard to the prevailing laws, since it is the individual members who would be held liable for posting of copy-right materials or violation of any other laws.

Group Owner / Moderators donot have the resources to screen the content of every message that users of google group services (like Aiii) send and will not be held liable for any posts which violate copyright laws or any applicable law.

Moderators will also remove individual members from the group, if we receive complaints regarding law violations.