S-L-S (First Short- Later Long- Finally Short)- Once Market respects the levels mentioned.
*Note-Any potential buy positions to be considered only above 651 -if sustains or in the zone 598-605
When I started reading the basics of technical analysis years ago - I came across a term - "trend is your friend"- never go against it in the Bible book Technical...
After the recent news flow there was a sell off in this counter. However, that was a sector wise sell off. The open interest data suggest that majority in the market are positive on this counter and here is the snapshot - www.screencast.com Expecting the reversal to hold and go back to the previous highs.
Immediate target 700 and stop at 600
Potential Bullish Shark pattern spotted in BPCL charts. PA facing resistance and may likely retrace back to the potential reversal zones completing the pattern. From thereon bullish moves are likely to be made on account of bullish PA from higher time frames and previous PA patterns.
for educational purpose only - bpcl after breakdown of head n shoulder pattern it reached it's target but here hammer doji with good volume (means smart buying of fear sell) buy above 636 with sl of 622. for tgt of 657 - 660.
BPCL has completed Cycle wave 3 earlier this year. W5 of this cycle W3 was substantially extended.
Consequently the correction in the form of W4 would also be substantial.
As shown below in the 15 min chart, first set of ABC correction is already complete. The stock should now consolidate for next few days with upward bias.
Consequently, the strategy here...
BPCL is at a pretty good support level and also forming a bullish candle. The correction has been slow and we can expect the prices rally to the upper end, around 628.
Technical Analysis:
RSI above 50.
MACD on bullish crossover and Histogram on above '0' line.
Stochastic on bullish but in overbought level, so may be take some time to make correction.
Price lying above the EMA 50 and EMA 5/20 bullish crossover.
Trade:
Buy above - 631
Target 1 - 637
Target 2 - 642
Stop Loss - 625
Reward Points - ...
