Moving to higher ground

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: CNX Mid Cap index is at 6,016.

Though the intermediate trend of the indices is up, we are seeing mixed trends in stocks. A few stocks are in an intermediate downtrend, while a few are in an intermediate uptrend. This has been resulting in a choppy trend seen by the indices. The Bollinger Bands suggest that this is likely to continue for a while before the indices move into a trending mode. Thus traders must also look for short-term positions in these conditions and investors must continue to stay away as the major trend is still down. With the indices moving closer to the support, select stocks will move higher once the indices bounce back. I will not look at sectors today and will discuss a few stocks, which will continue to move higher once the indices take a support and move higher.

Great Offshore

Like most of the stocks and the indices, Great Offshore is in a major downtrend, as it has been exhibiting descending intermediate tops and bottoms. The stock is currently in an intermediate uptrend and has been in a minor correction in the past two days. Once the minor correction ends, the stock’s intermediate uptrend will continue and the stock will move higher towards the next resistance of 620. As the major trend of the stock is down, investors must stay away. Swing traders and short-term traders must wait for the current minor downtrend to end before taking fresh long positions.

BPCL

With the prices of crude heading lower, oil refining companies have been improving. BPCL went into a major uptrend, as the stock has exhibited ascending intermediate tops and bottoms and is one of the few stocks, which have gone into a major uptrend. However, when crude starts a rally again, the stock will again take a beating and hence the current intermediate rise by the stock is just a trading activity. A pull back or a consolidation in the coming week can be used by traders to look for long positions in the stock. The next important resistance to the stock is at 410-420.

Indian Oil