BPCL Analysis: Weekly Chart on 24-July-2015:
- The prices are hovering near the weekly price upper channel, which is near 1000 currently.
- The candle formed last week is showing sign of momentum loss, as the prices have not closed near the highs. But this is not yet confrimed.
- Based on the weekly chart, there is not enough evidence to take short position.
- Let’s look at the weekly chart.
BPCL Daily Chart on 24-July-2015:
- RSI and Volume is showing negative divergence on daily chart.
- The negative divergence is not present on MACD.
- The last candle made a lower high and lower low. It has happened after 9 days of continuous higher high and higher low on daily candle chart. Hence this is significant.
- Now, we should look for confirmation on intraday chart on Monday. Some of the signs that a keen trader may want to track are fall in price with high volume.
- Or, lower lows in intraday trading activity.
- Another thing to note here is the fact that even if we are right and the prices drift lower on Monday, we still do not have confirmation of trend reversal.
- At best we only see a possibility of some correction happening from early next week.