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    Chart Check: Golden crossover in Jan; this oil & gas stock inches higher post breakout from a range

    Synopsis

    “Based on the aforementioned rationale, stock can be looked for by candidates in the range of Rs 152 to Rs 150 with a stop loss of Rs 145 for the upside potential up to Rs 163 to Rs 165 level. Duration can be one month around,” he recommends.

    Chart Check: Golden crossover in Jan; this oil & gas stock inches higher post breakout from a rangeETMarkets.com
    ONGC, part of the oil & gas index, gave a breakout from a consolidation last week, and it also recorded a golden crossover on the daily charts which is a positive sign for the bulls.

    The stock hit a 52-week high of Rs 194 back in March 2022, but it failed to hold on to the momentum. It bounced back after hitting a low of Rs 119 in July 2022.

    The breakout has opened the room for the stock to head towards Rs 163-165 levels in the next 1 month, suggest experts.

    The stock rallied and moved in a range where 150 acted as a stiff resistance since December 2022 while on the downside Rs 140 acted strong support on the daily charts.

    The stock recorded a Golden Crossover on 16 January 2023 on the daily charts. Golden Crossover occurs when its 50-day simple moving average (SMA) crosses the 200-day SMA.

    The stock has risen more than 3% in a week, and nearly 17% in the last 3 months.

    In terms of price action, the stock is trading well above most of the crucial short- and long-term moving averages such as 5,10,30,50,100, and 200-DMA which is a positive sign for the bulls.

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    The Relative Strength Index (RSI) is placed at 64.2. RSI below 30 is considered oversold and above 70 is considered overbought, Trendlyne data showed. MACD is above its center and signal Line, this is a bullish indicator.

    Metals and oil & gas sectors saw an upward movement amid consolidation. Within the oil & gas sector, refineries and marketing stocks (except reliance) stocks doing well.

    “ONGC stock had a strong move, it has retraced to 38.2% on the monthly chart which is an important support level from the Fibonacci perspective,” Kapil Shah, Technical Analyst, Emkay Global Financial Services and Trainer at FinLearn Academy, said.

    “On the weekly chart, the stock has formed a strong base followed by an upside breakout, on the daily chart, the stock is moving in an upward channel followed by an upside breakout. It is a bullish continuation sign,” he added.

    “Stock is sailing above short to the long-term moving average. Daily RSI is above 65 levels and MACD has positive cross over in the positive zone indicating positive movement in the stock,” highlighted Shah.

    “Based on the aforementioned rationale, stock can be looked for by candidates in the range of Rs 152 to Rs 150 with a stop loss of Rs 145 for the upside potential up to Rs 163 to Rs 165 level. Duration can be one month around,” he recommends.

    (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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