BPCL - Stock in a hurry

BPCL was in hurry to correct over the past 4 trading sessions. The stock is reacting strongly on the price cuts that the Petroleum Minister Mr Murli Deora discussed a few days back. If this was true, this is giving an option to trade if the information does not actually materialises in the near future. Well, that is something for time to tell!

• It is a wonderful double head formation. A good bearish sign! The only reason for it not being a proper formation would be the volumes. Volumes has risen with the price increase especially at its peak.
• MACD has given a 'Sell' as the signal line for the stock has been breached.
  

Targets for this stock would be to watch until it breaches Rs. 360 on good volumes. Then the stock could further fall - a highly unlikely proposition unless the petrol minister comes out with a huge cut in prices, of which he is not comfortable with. At Rs.385, one can buy the stock with a first target at Rs. 396 and the second target at Rs. 420. Both these levels can be reached instantly with a change in the news on pricing of petrol!