MOIL Adding Strength With Reverse “Heads & Shoulders”

Targets : 410-420 Buy Range : Above 356 Stoploss : 319 Duration : 2-3 months

Outlook :
Current chart structure of MOIL a participant from Mining & Minerals sector suggest a potential “ Inverted Heads & Shoulders pattern setup on the 3 line break charts.
This pattern is a reversal pattern signaling a bottom as it occurs following a downtrend. As the pattern contains three successive troughs with the middle trough (Head 296.65 levels ) being the deepest and the two outside troughs ( Shoulders Left 306.80 & Right 318.40) being shallower.
However it is advisable to wait the till the bar closes above the neckline ( 355 levels ). Recent price pattern also resulted a breakout from a “downward sloping trendline (black coloured line) with surge in volumes and since the breakout is on higher side, we expect the prices heading towards north.
Moreover, Stock has already witnessed a “3 line Break” and all set to head higher Three Line Break, denotes a stronger move that can signal a trend reversal. A bullish trend reversal occurs when three black lines form and a single white line breaks the high of these three lines.
Bollinger bandwidth suggests that a squeeze has ended and a breakout above the upper band has happened which is a positive signal.Stock is trading above its short, medium and longer term moving averages , 14 period RSI suggest a strong upmove going forward for the stock.
Keeping in mind, the above technical observations, we suggest a Buy in this particular stock as per levels mentioned above.
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