Monday, 15 July 2013

Two BULLISH Plays ONGC& OIL INDIA





Here are two technically strong stocks which deserve attention

Trading Rule: Technically strong stocks are Buys on Pullbacks.
Here’s the Chart of Stock # 1: ONGC at Breakout Point on weekly chart


ONGC broke out above 290-295 in the week of 18th Jan 2013 and now more than six months have passed and stock has done nothing. Post breakout in Jan, the stock rallied to 340-350. Now, the stock has pulled back to the breakout point. Technically, this offers a good buying opportunity and if market does not collapses: the stock has potential to surprise on the upside.
Trading Strategy: Go Long below 300 with stop loss below 280
Here’s the Chart of Stock # 2: Oil India at 200 dma




Oil India has been in strong uptrend and pullback to 200 dma looks like a good buying opportunity
Trading Strategy: Go Long at cmp with stop loss of 3% below 200 dma. 
In markets, we are dealing with probabilities. There is no guarantee that trade may work out as visualized. The overall market environment is all over the place. Please do your own due diligence before trading.

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