ONGC (Rs 304.8): BUY

Yoganand D. |BL Research Bureau | Updated on: Mar 14, 2018

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The stock of Oil and Natural Gas Corporation surged 3 per cent with above average volume on Monday. This rally helped it to decisively break through a key long-term resistance level as well as an ascending triangle pattern around Rs 298. Short-term traders can now consider buying the stock.

It took support at Rs 244 in late August, after a medium-term decline. Since then, the stock was on a sideways consolidation with an upward bias, forming an ascending triangle pattern with horizontal line at Rs 298. The stock has also breached the 200-day moving average line and is hovering well above 50-day moving average. T

he moving average convergence divergence indicator is featuring in the positive territory adding strength to the stock’s current uptrend. Indicators oni the weekly chart are moving higher, backing the price move. The stock has the potential to trend northwards to Rs 317 or Rs 323 in the forthcoming trading sessions. Traders with a short-term perspective can buy the stock with stop-loss at Rs 298.5.

( Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

Published on December 09, 2013
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