Castrol India stock seems to be presenting an interesting opportunity and here’s why
Here’s the Castrol India Stock Daily Chart
Source: Chartalert.com
Recovery: Castrol India stock was down and out near 114 in August 2019 but then thanks to market conditions – the stock made a nice little recovery and moved above 50 dma
Bulish move from the Launchpad: Castrol India stock took support at 50 dma on 19th September and rallied almost vertically from 122 to 156 by the end of October 2019. The move was fuelled by +ve earnings report
Consolidation and Pullback – It’s natural for the stock to trade sideways after making a big bullish move. Castrol India stock did that and traded sideways in the month of Nov. It now has pulled back to 50 dma – the same moving average launchpad from where the stock rallied big time last time. Can the stock rally now – One can hope so 💡Â
What if the stock fails here and slips below 50 dma – It’s possible that the stock does not hold here and slips. Trading is all about making an assumption and hoping for gains. If the stock fails to hold here and closes down below 50 dma on any day, then just exit because it means then the stock has some other plans. The Stop Loss should be below 134.
How high the stock can go – One can assume it can go back to 200 week ma of 170-180 over the next 3 months. This is Castrol India weekly chart
Source: Chartalert.com
Please do your own due diligence before trading.
Trade Sheet
