A classical Trianglular pattern on Oil and Gas Stock + Crude Oil Rally. How to Trade Pattern?

Basically patterns occur either on bottom or middle or near top when a stock or Index forms a base formation. The accumulation happens as smart money consolidates near bottom while consolidation after a rally to digest the move and get ready for next leg of move either upwards or downards. Finally third phase where patterns form are near top where distribution happens and smart money sells stocks and break down occurs.

Daily Chart

• ONGC an Oil and Gas hsa formed and ascending triangle pattern

• The stock has broken out of the pattern

• Momentum indicators show shift in northeard bias

• The accumulation pattern has been formed near bottom after irregular 3-3-5 correction to complete 4th Wave

• Crude Oil is also on the upward jouney with global uncertainty kicks in with Israel attack on Iran triggering turmoil across globe

• The stock is on the verge to start Wave 5 of larger degree

Disclaimer:

Stock markets investments are subject to market risks. Please read related documents carefully before trading or investing in stock markets. Do consult your personal financial advisor for trading or advise. I Mr. Raju Angadi Vishwanath, MS, CFTe is a SEBi registered Research Analyst and founder of Trader Hut. We at Traderz Hut intend to provide unbiased research services and we are not liable to any losses incurred in trading or investing in stock market. This blog and research is for educational basis only.