Oil stock forms a strong rounded floor pattern on a daily chart. Check the key support and resistance level
The round floor is also called a plate floor pattern, which is an optimistic chart pattern and represents the reversal from the down trend to the upward trend. This pattern is gradually formed and is usually a U -shaped pattern. It also indicates accumulation. In other words, it means that the seller is gradually occupying the exit and the buyer is controlled.
How to identify a round floor pattern?
- Stock price
- It suggests that the curved pattern has been formed and the downward trend has begun to lose the momentum.
- Pay attention to a gradual price increase that reflects the left side of the pattern.
- Checking patterns with increased volume as the price rises
How to exchange patterns
Input is done when the resistance level is formed at the beginning of the pattern. The target is set by measuring the depth of the pattern (from the brake out level to the bottom of the pattern), and the stop loss is placed at some points below the brake out level.
Next is stocks to keep watching
Indian Oil Corporation Limited (IOCL) is the largest government -owned oil and gas company in India, headquartered in New Delhi. Founded in 1959, the company operates in the entire hydrocarbon value chain, including refining, pipeline transportation, petroleum product marketing, exploration and production of petroleum and gas. The purification capacity of IOCL is 855 million tons per year (MMTPA).
The brake out level of the round floor pattern is RS. 145.09, stocks were closed on RS. It is 144.08 in the last trading session and is currently being traded below the brake out level. The next resistance area of the stock is RS. 168.5, the closest support of the stock is RS. 133.
Founded in 1976 and headquartered in Mumbai, Bharat Petroleum Corporation Limited (BPCL) is a famous public sector and gas company in India. It operates three major refiners: Mumbai, Coach and Vina, and combines 33.3 million tons of refineries per year. BPCL is involved in marketing of petroleum products, natural gas, liquefied natural gas (LNG), lubricants and petrochemicals.
The brake out level of the round floor pattern is RS. 316.60, stocks were closed on RS. It is 311.50 in the last trading session and is currently being traded below the brake out level. The next resistance area of the stock is RS. 353.25, the closest support area for stocks is RS. 292.75.
SRIDHAR J.
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