Short

BPCL WILL FARTHER FALL DUE TO THIS PATTERN...

Updated

TECHNICAL INDICATORS -

REVERSED ASCENDING WEDGE PATTERN :
The stock had broken down from this pattern on 22nd oct with a proper red candlestick and fell 34 points since then. It is expected to fall 10 points more to reach the profit target
BEARISH DIVERGENCE :
The stock had formed a "Bearish Divergence" pattern on 31st july & 30th sept and fell considerably after that
PROFIT TARGET :
282.00

Trade closed: target reached

BPCL has reached the target level of 282 that was mentioned earlier on the next day itself.

The bearish divergence was quite strong in the chart which helped the stock gain momentum to reach the target very fast but note that there was a period of consolidation from 25th oct to 13th nov when it had lost the momentum completely & was moving sideways continuously. There was doji & hammers being formed initially during the consolidation which indicated period of indecision. Later on solid candles started forming which indicated that market might be getting back the lost momentum.

Eventually market did get back its momentum and fell drastically to reach the target after a while.

Note that the movement in BPCL stock was not in sync with nifty ie at one point nifty was moving downwards while BPCL was moving sideways & similarly at some other point nifty was moving sideways while BPCL was moving downwards.

Note

image of the stock on chart with the target hit

peace_lover

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