IOC Set for an upward swing

BHUMIT-ARQ Updated   
Comment: Attached weekly chart of Indian Oil Corporation, a participant from a refinery sector, is implying that the stock is about to pull off from its major support zones.
Stock’s seems to be finishing its groundwork at or near levels of 360-370 on the basis of following parameters:
The 50% retracement of the previous up move from 77 (February 2015) to the crest of 231.40 (August 2017) is placed at 154 levels.
Long term 200-EMA is placed at 148 levels as per weekly chart.
Moreover “Bullish Engulfing Candlestick” pattern was visible on the weekly charts (shown in yellow circular object) with sudden surge in volumes, the above said pattern is considered to be a trend reversal pattern, giving investors the buy signal indicating that the bear run is over and bulls might gain the control over the stock.
It has also been observed that the stock price is consolidating near lower band of 100 week’s old regression channel, thus reversal is imminent at this stage.
Lastly, 14-Period weekly RSI is turning up above oversold trajectory, Slow stochastic has already given a buy signal, which also confirms positive momentum building up in the stock prices.
We strongly believe the stock has potential to elevate from here and achieve the levels on the higher side, thereby recommend a strong BUY at CMP and also on any dips (price range 160-165), maintaining a stoploss just below 150 on a weekly close basis and expected targets are at or near 200-229/ Higher


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