We recommend a sell in the stock of Hindustan Oil Exploration from a short-term perspective. It is evident from the charts of the stock that after finding support around Rs 160 between February and March, it started moving up wards. The stock accelerated higher in a short span of two weeks and encountered significant long-term resistance at Rs 230 on April 4. This resistance almost coincides with the 50 per cent fibonacci retracement level of the stock's prior down move from November 2010 peak of Rs 293.

However, after testing this resistance for seven trading sessions, the stock's uptrend grow weaker and on Monday it tumbled five per cent. With this decline, the stock has breached its 200-day moving average. Moreover, this reversal has been triggered by negative divergence in the daily relative strength index. The daily RSI has entered in the neutral region from the bullish zone and weekly RSI is sloping in the neutral region. We are bearish on the stock from a short-term horizon. We anticipate it to decline further until it reaches our price target of Rs 210 or Rs 201 in the upcoming trading session. Traders with short-term perspective can consider selling the stock with stop-loss at Rs 221.