Oil & Gas Index has been underperforming the broader Index for a long time and so has been ONGC. But now it seems to be changing tracks, see the chart above (top right), it shows the RS line (below in blue) of ONGC(green Line) vis a vis Nifty (red line) beginning to move up. Alos if you notice though Nifty has made a new lower low ONGC has had a higher low.
The weekly chart (bottom right) is to show you the broader picture and how its holding above some important support!
The daily chart to you left, has some convergence happening (need to have patience for Divergence as none happening yet);
- We are trading at the 20/50 EMA zone
- We have already jabbed the Down trend line from Jan Highs
- The weekly is kinda OS
ONGC trading above 1045/50 faces resistance at 1060/62, and then it’s straight towards to likely breakout resistance at 1080 (a confluence of channel resistance and 200 periods EMA!), which holds the key to the future move in it!
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