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Investors with a short-term horizon can buy the stock of Hindustan Oil Exploration at current levels. Since recording a 52-week low at ₹30 in late March this year, the stock has been in an intermediate-term uptrend. But, the stock had encountered a key resistance at ₹95 in August and witnessed a short-term corrective decline until last week. The 200-day moving average and a key support at around ₹70 had cushioned the stock in the past week. Subsequently the stock resumed the uptrend and continued to trend upwards.
On Wednesday, the stock climbed 5.5 per cent accompanied by above average volume and managed to close at above the 21-day moving average. with this up-move, the stock appears to have resumed the intermediate-term uptrend. It hovers well above the 50 and 200-day moving averages. The daily relative strength index is charting higher in the neutral region and is likely to enter the bullish zone from the neutral region.
The stock has the potential to trend upwards and reach the price targets of ₹83 and ₹85 in the forthcoming trading sessions. Traders with a short-term horizon can buy the stock with a stop-loss at ₹77.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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