Adani Total Gas stock was up by 6.4% today, but we suggest staying away from such stocks as we should never catch a falling knife.
The stock reached a high of 4000 in January 2023 and is now trading at 670, which is a perfect example of wealth erosion for investors who don’t trade with stop loss.
Today’s rally is a short covering and might continue for a few more days, but the long-term trend of the stock is negative.
The stock is forming an Inverse Pole & Flag bearish pattern on the monthly time frame, with some support at the 525-550 levels. If these levels are broken, we could see levels of 350. All key levels have been marked on the above chart.
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