BPCL - A turnaround
BPCL has created a nice chart across a few month. 3 channel formations since mid may. A descending, an ascending and a flat. What is of interest is the recent flat formation of channel. The stock has just broken by an extremely small margin and will be the next candidate to look at for breaking the current resitance and race to its next level of 360-370.The current conditions in the market is still optimistic for the current rally to extend a bit further. Hence the stock can be held for some time for existing investors and fresh positions can be taken at around 335.
posted by M B Mahesh at 7:23 PM
2 Comments:
Hi,
I have started using Metasock very recently and all that I have been able to understand is that firstly, when a stock has a Stochastic value of abt 10 and the price is also close to its 52week low, the chances of a further downside are very very less. A long entry at this level does well and the reverse is true for a short position. Secondly, using the same logic I took a long position in BPCL at 305, but dont know how to fix a target for exit. Kindly enlighten.
Thanks
Shekhar
I normally use patterns, and a few technical indicators for judging my pricing of a stock. I do not use Stochastic for building my charts. Hence I would not be the right person to tell you a pricing based on this technical formula. However, the stock upper price was determined based on the resistance it was created in the previous rally.
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