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RETAIL RESEARCH
CMP #
Rs.287.75
Recommended Action
Buy between CMP & Rs.264
Targets
Rs.320/355
SL*
Rs.256
Time Horizon
1-2 Months
Note: * Place stoploss as per daily closing basis. Recommended to stagger buying/selling. If first target achieved, then revise stoploss to buying/selling price.
# cmp at the time of issue of call in jaamoon.
Observation:
The weekly timeframe chart of Chennai Petroleum Corporation Ltd (CHENNPETRO) has been indicating a sharp up trended
move over the last couple of months.
The recent correction in the stock price was limited up to a few sessions and that price weakness has not damaged the
underlying trend of the stock price, as the stock prices have bounced back after the minor setback.
The stock price held above the immediate support of around Rs.256 (green dashed horizontal line), as per the concept of
change in polarity. This suggests that the bulls are strongly holding this counter and the sharp weakness is not occurring
despite strong upmoves of recent times.
The larger degree of positive structure (higher tops and higher bottoms) is intact and the recent bottom of Rs.137.80 levels
(mid of Feb-16) could be considered as a higher bottom of the sequence. Hence, one may expect continuation of uptrend
from here to form a new higher top of the sequence in future.
The weekly 14 period RSI has turned up from near 60 levels. Presently, the weekly RSI is in a bullish high low range of
around 40-75 levels. From the current levels of 67, the weekly RSI is expected to reach up to upper 70-75 levels. This
expected action of RSI could mean continuation of up trended move in the stock price ahead.
The overall positive chart and momentum pattern is showing an opportunity to going long in CHENNPETRO at the
abovementioned levels.
RETAIL RESEARCH
P age |1
RETAIL RESEARCH
RETAIL RESEARCH
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