MRPL Stock Gains Over 7% and Breaks Continuation Pattern: Resilience Shines

In a recent bout of trading activity, Mangalore Refinery & Petrochemicals Ltd., a significant player in the Oil and Gas sector, showcases impressive resilience by achieving a remarkable surge of more than 7.17%. This surge strategically places the company just beyond a crucial breakout trendline within a notable “continuation pattern.”

Mangalore Refinery & Petrochemicals Ltd operates as an oil refining enterprise, specialising in petroleum refinery services. The company provides diesel, motor spirit, and aviation turbine fuels. It was established on March 7, 1988, with its headquarters situated in Mangalore, India.

Originating as a joint venture between the AV Birla Group and Hindustan Petroleum Corporation Limited (HPCL), Mangalore Refinery & Petrochemicals Limited (MRPL) is now a subsidiary of Oil & Natural Gas Corporation (ONGC). Its core activities encompass crude oil refining, petrochemical ventures, aviation fuel trading, and the distribution of petroleum products through retail outlets and transport terminals.

A comprehensive analysis of MRPL’s stock performance spanning from July 06, 2023 (Rs 92.25) to August 18, 2023 (Rs 86.65) unveils a compelling Continuation Price Pattern. This pattern suggests the potential for a substantial price movement. Of noteworthy significance is the recent trading session which witnessed an impressive rally, exceeding 7.17% and involving robust trading volumes that crossed 28.20 million shares. The session’s conclusion above the breakout trendline effectively validates the breakout.

At the present moment, MRPL confidently trades above the breakout trendline threshold at Rs 87.5, reaching Rs 91.90, with an intraday peak of Rs 92.40. Savvy long-term investors are encouraged to capitalize on this breakout opportunity. Further affirmation of the continuation of the technical price pattern is manifested through subsequent trading sessions showcasing consistent buying behaviour. The anticipated target for this pattern revolves around Rs 115, indicating a remarkable surge of more than 30% from the breakout level.

Boosting the bullish outlook, the 14-week relative strength index (RSI) positions itself comfortably within the bullish zone, hovering around 67.77. This indicates the company’s favourable position. Coupled with the robust momentum suggested by short-term key moving averages, both momentum traders and long-term investors are presented with a compelling case to consider MRPL Ltd as an attractive contender for strategic inclusion in their upcoming trading endeavours.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.