Chart Check: Ascending triangle breakout makes BPCL an attractive buy; next target seen at Rs 400

Bharat Petroleum Corporation Ltd (BPCL), part of the oil & gas industry, recorded a breakout from an Ascending Triangle formation on the weekly charts which has opened room for the stock to head towards Rs 400 levels.

The stock hit a fresh 52-week high of Rs 374 on 11th May 2023 but it failed to hold on to the momentum. The stock saw marginal profit after that.

Short-term traders can look to buy the stock for a possible target of Rs 400 in the next 3-4 weeks, suggest experts.


Ascending triangles are also known as continuation patterns and breakout from the rising trendline suggests that bulls are in control. Also Read https://economictimes.indiatimes.com/markets/stocks/news/technical-analysis-ascending-descending-triangles/articleshow/70599015.cms

The breakout from the pattern was placed above Rs 360 levels. The stock formed a strong base above Rs 288 levels. It retested the same back in June 2022 and again in October 2022.

In terms of price action, the stock is trading below short-term moving averages such as 5 and 10-DMA on the daily charts but above 30,50 and 200-DMA.

The Relative Strength Index (RSI) is placed at 58.3. 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.

“The stock has given consolidation breakout on the monthly scale after eleven months and formed a strong Bullish candle. It has given an Ascending Triangle Breakout on a weekly chart which is a bullish price pattern and forming higher highs – higher lows from the past four weeks,” Arpit Beriwal, Analyst, Equity Derivatives & Technicals, MOFSL, said.

“On the daily scale, it has given consolidation breakout and managed to close above its critical level of Rs 370 zones. Strong buying is visible across oil and gas space which will support the up move,” he said.

Momentum indicator RSI also has given a range breakout which has bullish implications. It is trading above all crucial moving averages and ongoing optimism can continue.

“Recommending to buy the stock at current levels with keeping a stop loss below Rs 358 levels on closing basis for an upside move towards Rs 400 zones,” recommends Beriwal.

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