BPCL, slightly risky but if works will be worth it.
BPCL is forming ascending Triangle.
It's Interesting to see the rejections at the resistance level marked by red arrows, because those 2 candle show strong reversal with upper wicks and short bodies , following by big down move.
The Trend line is acting as a good support since March 2020 fall. It's been tested multiple times, that's why I mentioned slightly risky
Reason for going long, bullish engulf candle at supporting trend line. SL will be around previous support at trend line around 370 area. At this entry point risk reward is most favorable being closer to the support.
First target will be the resistance zone yellow area.
Yellow marked area Being a strong rejection zone, if crossed will trigger a sharp upmove or will be crossed will be crossed with sharp move. Next target is much much higher, that's why most favorable risk reward at current levels.
Week on week for 4 weeks now volumes picking up.
On daily chart below see, check the stock is in narrow range and at the upper end of it.
Check previous Idea on BPCL
Link attached
It's Interesting to see the rejections at the resistance level marked by red arrows, because those 2 candle show strong reversal with upper wicks and short bodies , following by big down move.
The Trend line is acting as a good support since March 2020 fall. It's been tested multiple times, that's why I mentioned slightly risky
Reason for going long, bullish engulf candle at supporting trend line. SL will be around previous support at trend line around 370 area. At this entry point risk reward is most favorable being closer to the support.
First target will be the resistance zone yellow area.
Yellow marked area Being a strong rejection zone, if crossed will trigger a sharp upmove or will be crossed will be crossed with sharp move. Next target is much much higher, that's why most favorable risk reward at current levels.
Week on week for 4 weeks now volumes picking up.
On daily chart below see, check the stock is in narrow range and at the upper end of it.
Check previous Idea on BPCL
Link attached
A broadening bottom is a bullish reversal pattern. The pattern is formed by two divergent lines which are horizontally symmetric. It is therefore a reverse symmetrical triangle.