Hindustan Petroleum Corporation Limited (HPCL) breaks short & medium support in the daily chart. The stock was making lower low and lower high over the last five months after making 52 weeks high of 492 in last Aug. The stock was forming short term support around 400 rupees. In the last four days, it decisively broke the support line with volume of over 8 millions on daily basis in National Stock Exchange.
The worst part is, it also breaks medium term support range of 385-390. Earlier last year, the 385-390 range was acting as major resistance, whenever price reaches 380+ levels there will be bearish candle to pull down the price. The major resistance was also acting as medium support.
The 61.8% Fibonacci retrace of recent rally from 52 weeks low of 327 (Jun 27, 2017) to 52 weeks high 492.8 (Aug 31, 2017) comes around same medium term support line of 390. The 61.8% Fibonacci retrace levels are likely to hold the price. It is important to watch out the price to attempt to get back above the 390 levels. Failure to do in the comping days, there will be more downward pressure for HPCL.