Oil India daily chart (click on chart to zoom)
On daily chart, stock is forming narrowing wedge pattern which is a bullish pattern if stock breaks out of wedge that's above the upper trend line (blue line). Stock is trading above all its key moving averages which also adds weight to the break out. As shown in the chart there rounding bottom formations indicating buy on dips by smart traders or investors on at lower price. Stock didn't participate in recent bull run so expectation is that it should now move up.
Stock can be bought at CMP (489 as on 26 oct 2012) for the short term target of 520-530.
Stop loss at 470-475 recommended.
On daily chart, stock is forming narrowing wedge pattern which is a bullish pattern if stock breaks out of wedge that's above the upper trend line (blue line). Stock is trading above all its key moving averages which also adds weight to the break out. As shown in the chart there rounding bottom formations indicating buy on dips by smart traders or investors on at lower price. Stock didn't participate in recent bull run so expectation is that it should now move up.
Stock can be bought at CMP (489 as on 26 oct 2012) for the short term target of 520-530.
Stop loss at 470-475 recommended.