Momentum Stock To Focus On Right Now
TCS is currently trading at ₹2708.35. Its 52-week high/low stand at ₹2743.60/₹2054.70 made on November 7, 2017 and November 15, 2016, respectively, which shows that the stock has been trailing in a rectangular pattern since October 2014. Recently, the stock has attempted to move out of its comfort zone with a multiple point downward sloping trendline breakout at ₹2675 level. Even the RSI on the weekly time frame is quoting at 68, which depicts some more momentum going forward.
On a daily basis too, the recent sessions have seen rising volumes and ROC too has bounced from the o levels and is quoting at 4.9 level at the breakout point. Within the range, the stock has been witnessing zig-zag pattern with significant higher bottoms, i.e., support at upward sloping trendline.
With this, we feel TCS could be a good bet on momentum for a target of ₹3050, followed by ₹3200 and with a stop loss of ₹2460. Asian Oilfield is currently trading at ₹205.30. Its 52-week high/ low stand at ₹249.60/₹60 made on March 27, 2017 and November 9, 2016, respectively, which shows that the stock is trading in an uptrend. Considering the weekly time frame, the stock saw an impulsive rally since October 2016, and after hitting its 52-week high, the stock witnessed a double top at ₹249 level and started correction from March 2017 which continues till date.
The correction was up to 38.2% retracement of the prior upward rally and was seen consolidating at the same levels so far. Recently, considering the daily time frame, the stock has given a multiple point downward sloping trendline breakout at ₹200 level with huge volumes. The 14-period RSI is quoting at 67 and the ROC and ROC average are quoting at 9.8 and 4, which show momentum ahead in the stock. Hence, traders can enter the stock at the current levels for a target of ₹235, followed by ₹247 and stop loss of ₹185. (Closing price as of Nov 8, 2017)