Bharat Petroleum Corp is on the verge of a multi-year high breakout

Today, Bharat Petroleum Corporation Ltd (BPCL) opened at Rs 517.35, showing early positive momentum in the stock. The intraday high reached Rs 555, indicating bullish activity. However, the stock experienced fluctuations during the session, with the intraday low touching Rs 516. The current market price (CMP) is trading at Rs 547.2, reflecting a positive movement from the previous close of Rs 508.45.

Bharat Petroleum Corp. Ltd

Daily technical chart of Bharat Petroleum Corp. Ltd

The stock has witnessed a notable per cent change of 7.62% during the intraday session, highlighting substantial volatility and buyer’s interest. Looking at the volume traded in the last few months is a phenomenon and attention-seeking. The marabozu candle of Friday is showing such a bullish move with the strongest buying from the last one year.

Looking at the broader picture, BPCL’s 52-week high is at Rs 555, which was touched during the intraday session. On the other hand, the 52-week low is at Rs 314.05, indicating the overall range of price movements over the past year. Bharat Petroleum Corporation Ltd currently boasts a market capitalization of Rs 1,19,437.85 crore.

Bharat Petroleum Corp. Ltd – Entry on the signs of Sustenance| Target 1st at Rs 585 | 2nd target at Rs 685 | 3rd target 785 | SL at Rs 480 |

Weekly technical chart of Bharat Petroleum Corp. Ltd

Technical analysis

Looking at the weekly chart of Bharat Petroleum Corp. we can clearly see that the stock price is on the verge of a multi-year breakout level. Consolidating in the range of 300 points from Rs 250 to Rs 550. The stock has been trading in this range since 2016 when it touched its range high twice and its range low four times. Now it’s a third attempt to breach the upper level of the range. Recently, the stock has given a breakout of the continuation pattern following the base chart pattern.

The current multiyear breakout may be game-changing for the BPCL if it manages to sustain a near-current trading level after or before the breakout. As the current PSU stock rally is in support of the stock, the stock price is continuously rising.

Volumes are suggesting a promising picture as a bunch of volumes have been traded in the last few weeks. The Relative Strength Index is trading at 81.12, which is in the overbought zone. This is one of the reasons to wait for the sustenance of the stock price to ride a long rally of approximately 300 points above current levels.

The traders or investors can enter into the trade only after sustained momentum at current levels. A possible extended target for the trade could be around Rs 850, where traders can book some profits at resistance levels: the 1st target to be achieved at Rs 585, the 2nd target at Rs 685, and the 3rd target to be set at Rs 785. In the event of any corrective move from the current level, the stock price may bounce back to the range of Rs 480 to Rs 500.

Future outlook

Bharat Petroleum Corporation Ltd (BPCL) exhibits promising signs of a multi-year high breakout. With intraday highs, weekly chart patterns, and substantial volumes aligning, the stock’s potential rally to Rs 850 is notable. However, prudent investors should await sustained momentum at current levels and consider the risks associated with overbought conditions. The dynamic market scenario and supportive factors indicate a transformative phase for BPCL, making it a stock to watch closely in the coming sessions.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.