ONGC (A Falling Knife to a Rising Knight ?)

Apr 11, 2020

Looking at the Chart ONGC looks ready for a move within a day or two. ONGC has taken quiet a hit and bounce due to the ongoing news surrounding the crude oil. With all the news surrounding the production booms / cuts which has impacted the Crude prices on a high magnitude has kept the volatility around the crude at a high level. Keeping the effect of this scenario in mind ONGC is currently taking at a Monthly resistance level (Blue Line), which was broken around the 10 of March and has been there twice only to be rejected. The yellow boxes on the 2 corners of the chart represent a similar pattern, just inverted on the right side. The first formation was the start of a high bearish sentiment, however the current one is possibly signalling off a bullish sentiment.The yellow arrow represents a sharp fall and the purple area focuses on an eventual rise to almost the same level as the fall, being supported by the change in trend angle which has increased from 12 Degrees to 40 Degrees as represented by the Dotted blue lines. The Green lines represent an area of Support and a Trend which has been respected strongly. The Yellow channel is The Demand zone, which has stood strong now for over a month.The yellow box formations were formed almost around that area indicating a change in sentiment.The other 2 Pink lines are an area of Support and Resistance. The MACD also stands at a crucial level which has currently seen a breakout below the yellow line, however it remains to be seen whether the price will respect the movement or is it deemed to reverse and have a breakout to the long side.
Any breakout towards the upside might see the price go atleast till the top pink line and depending upon the momentum and volume might fill in the gap which stands at around 88 levels. Any breakout below the trendline might see the price ranging between the Pink and the yellow area which if broken might give some good momentum and a strong bearish move.