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.