Short Term View on Indian Oil Corporation

IOCL has been in the downtrend since 2017 after making the high of 231.50.

Since then it has been forming a lower low and lower high structure on all-time frames. In 2018 it took nice support at the 120 which was the previous resistance zone and got consolidated for around a year. 120 was acting very strong support that time and we have seen very strong moment from that level till 160. But it failed to hold it for long and moved below 120. This was the indication that the market still is in the grip of bears.

Recently after making a low of 71.15 it got consolidated within the range of 96 to 70. In this consolidation, it has formed a bullish pattern that is the double bottom pattern this is the indication of shifting of short term trend.

One thing that is important to keep in mind while investing in this stock is that one should not look for the long term in this stock. Just do momentum trading. If you want to invest in this stock just make your view for the short term like 3-4 months only above the level of 97. This is the important hurdle for this stock. As we can see this is the seller area so b careful.

The consolidation of the last 10 month may be a short term accumulation phase if the stock move above from this phase then it can move to 120, before that I am not seeing any upside momentum in this stock.