BHEL: Heading for a breakout

K Seshadri

MUMBAI, December 9: Bhel has been giving trader's good speculative opportunities. The scrip is posting higher bottoms. It has also formed a triangle. It tested the top of the triangle at Rs 308 on the week ending September 25. Thereafter it posted a low of Rs 213 on October 15. It swung up again and posted high of Rs 278, and then Rs 268. This time on the downswing it took support at Rs 224.

Clearly the scrip has been posting higher bottoms and is rising on the back of an uptrend support line. The price movements have been narrowing down and the scrip is heading towards the tip of the triangle. Sooner than later, it is likely to break out on the upside at the level of Rs 257. After this the scrip could head for the previous high of Rs 343. On the downside, just now it can take support at Rs 236. It makes good investment sense to accumulate this now for the medium term for a very decent return. Buy it now and on decline.

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