Oil India limited has been consolidating for the past 18 weeks and has finally broken out from the rising wedge pattern on the weekly charts.
The breakout has been accompanied with a smart uptick in traded volumes. The relative strength index also indicates that the current momentum is likely to extend further.
We expect the stock to surge higher towards its potential target of Rs 266 levels in the medium term which translates into 10 percent return.
Disclaimer: The author is Senior Technical Analyst, IIFL. The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. Read More