ONGC challenges 6-month high; has more room to rise

  • Shares of Oil and Natural Gas Corporation hit a 6-month high of Rs 170 on 24th April.
  • On the daily chart, the price has surpassed its major resistance and witnessed a flag pattern formation. The stock has seen significant higher volumes in the recent days, which may further strengthen the trend. 

  • The support comes in around 130 to 135 range, which witnessed a buying strength earlier as well.
  • On the indicator front, the stock is well placed above its 21-days moving average and also price action on bullish note indicates stock is expected to continue the rally further once crossed above 171 level with high volume.
  • On the contrary, the stock might get corrected in the short term but keep the stock if the gap remains unfilled.