Wave Count on HPCL -Topping process CMP 450 TG 320
HPCL has been in wave
3 of a cycle degree since 2013 , Internal wave count indicates the wave 5 of
wave 3 could have completed near 486 levels
thus completing wave 3 of a cycle degree , Strong negative divergence has
started to emerge on momentum oscillators confirming the high possibility the
wave 5 up move is getting over. We expect stock price to enter consolidation
mode for next 6 months where price could retrace 38.2% of the up move from
2013-2016 and could test lower levels of 320.
HPCL has been in wave
3 uptrend since 2013 price projected target for the same was at 490 being
161.8% extension of wave 1 which stock tested
recently. We expect uptrend could
halt around these level and wave 4
correction could set in. With quarterly RSI at 83 level there is a high
probability the stock could console for next 2 quarter.
What Could Trigger a Selloff In HPCL
- CRUDE OIL – At a Cusp of a Breakout
Crude is forming a
major Inverted head and shoulder pattern on a weekly chart and is currently
approaching the neckline of inverted H&S, A move above 53 would confirm the
same and should result in good uptrend in
prices, Price projected target for crude would be around 62 (length of a
shoulder) /72 (length of Head). Such a move in crude prices could
remain an overhead for stock prices of HPCL.
