Tuesday, July 6, 2010

Hindustan Oil Exploration - Buy / Accumulate


The above weekly chart shows a strong breakout, which has taken place earlier from 170 levels and after making a peak of 372 it has come down to take support of the earlier breakout point. A long term rising channel is well placed. The indicators show a possible reversal from the downward channel. Resistance placed at 233. If the Resistance level of 233 breaks and then the stock rise towards 255 - 282 - 310 which is 38.2% - 50% - 61.8% retracement level taken from the high of 399.25 to the low of 166 level.
Support level will be at 189.
Recommendation:
Traders can buy at CMP 222 (OR) accumulate every correction up to 200 level and the target is 255 in short term perspective.
Long term traders can hold with the SL of 189.

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