This PSU stock is depicting an ascending triangle breakout

This PSU stock is depicting an ascending triangle breakout

Nifty 50 heads southwards following the global cues, but this PSU stock heads up around 4% after depicting an ascending triangle breakout. Read on to find out more.

After forming a dark cloud cover candlestick pattern on June 3, 2022, near its 50-Day and 200-Day Exponential Moving Average (EMA), Nifty 50 started heading southwards. Yesterday, it opened below 16,600 and tried to breach it throughout the day, but failed to end above it. Today, Nifty 50 futures opened below 16,500 and at the time of writing was trading at 16,425 level after making a high of 16,490 and a low of 16,354. Having said that, 16,200 to 16,400 levels would act as a strong support zone, a breach of which would lead Nifty 50 futures towards 15,700 to 15,850 levels.

However, despite markets being under pressure, there is one Public Sector Undertaking (PSU) stock which has witnessed a bullish price chart pattern. Oil India Ltd. (OIL) is the second-largest national oil and gas company in India that deals in the exploration, development and production of crude oil and natural gas, transportation of crude oil and production of LPG. OIL is a state-owned enterprise of the Government of India, under the administrative control of the Ministry of Petroleum and Natural Gas.

OIL on June 6, 2022, gave an ascending triangle breakout with high volumes on a daily chart. If you observe the weekly chart, then we can see that apart from ascending triangle breakout, it also formed a cup and handle continuation pattern. At the time of writing the stock was trading at Rs 289.4, up by 3.7% (10.5 points). Having said that, its support is placed at Rs 270 and resistance at Rs 335.