Industry: – Engineering and Capital Goods
Stock is around 52 week low. BHEL has witnessed a Dragon fly Doji on Daily chart before some days. As we could see in the chart, stock has been moving in the tune of Fibonacci Retrenchment for last one year. It has taken support 4 times around 1894 in last one year which is 100% retrenchment from the top. Technical Speaking stock has been trading in oversold territory and now it is time for long term investors to get into the stock.
Strategy: – Buy on Dips
Targets: – 2200/2500/2700
Time Horizon: – 1 year
Stop loss: – 1820
14 Day RSI: – Strong at 44 giving a buy signal
MACD: – (-21) after crossover at (-32) giving a strong BUY