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Investors can buy the stock of Hindustan Oil Exploration Company at current levels. On Thursday, the stock surged 10 per cent accompanied by extraordinary volume breaking through a symmetrical triangle as well as a key resistance at ₹70. This is a bullish continuation pattern. Since taking support at around ₹26 in February 2016, the stock has been on an intermediate-term uptrend. Medium- and short-term trends are also up for the stock.
After encountering a key resistance at around ₹70 in December 2016, the stock consolidated forming a symmetrical triangle pattern. The recent breakthrough of this pattern has strengthened the uptrend. The stock trades well above its 21- and 50-day moving averages. The daily and weekly relative strength indices are featuring in the bullish zone backing the uptrend. The short-term outlook is bullish. Traders can buy the stock with stop-loss at ₹72.5. Short-term price targets are ₹77.5 and ₹79.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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