Positional call – Buy BPCL above 382 sl 360 target 420-460

holding period 1-2 month

Positional call study – If we look at the chart of BPCL we can see that stock has taken support at 200 SMA number of times, and presently also it trading at 200 SMA support from past 5 trading session, so one more close above 200 SMA level can give us confirmation of reversal on chart.

If closely look at the trend lines then we can see that is a symmetric triangle and at present it has exactly touched demand line of bottom side, and it has chances to move up till supply line, which is almost around 400-420 range. and big breakout can be seen after breaking the triangle only. (we cant assure that which side it will break the triangle possibilities to break down side is also assume here)

combination of demand and supply trend line produced demand point on a chart and we can clearly see that it has taken some support at that point, so once price confirming this can give upside movement in stock.

RSI informing us that its a positive divergence on chart and if price is sustain above given level then we can see big up move in coming days.

even STOCHASTIC also giving some indication of positive divergence and its above to move up from oversold region only price need to confirm with the same.

Candle stick pattern indicating that it has given BULLISH ENGULFING candle on 7th may 2013, which is the last trading session.

so overall study indicating that one positive close or one good green candle on chart can confirm the up move of stock and according to that we can confirm the buying signal on this one.