Sunday, January 29, 2017

Petronet - Fresh Flag breakout

For about last 12 weeks this stocks was in consolidation phase. Consolidation is actually a period of contraction. We expect price to remain stagnant during contraction. Contraction periods are usually followed by expansion. Expansion means prices move in either direction. You can see below weekly chart of Petronet. A clear breakout of consolidation is an indication of start of expansion phase.