Hey oil, the world is going electric. Who wants you Mr. ONGC ??
'Theme', what a beautiful word it is. Every sense of yours reacts to it, even the 6th one. A slight whisper and your heart crave to know more about it. Your mind starts to connect the dots (even if ain't there). A castle is well constructed and you start living in it. Sounds nostalgic, right? It happens every damn time.
Right now, as we speak, going electric is the buzzword. No one wants the dirty, sticky fella known as OIL. Nope, there is nothing wrong is staying with the theme, after all, as they say, the trend is your friend, ride it.
Let's for a moment, try and find out IF it's really the end of the stuff which puts life in my Harley (yeah, I am a showoff)
I shared my thought with few people recently on 14th September. Putting it together out here.
ONGC monthly chart
Rationale: As one can see, past four months, the stock has NOT broken important Fibonacci level. The lowest it went 155.20 in June. As per Cup and Handle guidelines, if it doesn't fall any further, it's a great time to accumulate. A tip: RSI is in process of making a W on monthly time frame
Remember, in probability we are looking it as bottoming out candidate and NOT a breakout one, therefore patience is the key. We might see it reaching the white horizontal line over next few months. It turned ex-bonus on 15th December, 2016 and since then it's a forgotten guy.
How to play here? I've made a rule for myself, if it suits you, sure use it. The rule is: I'll buy X number of shares every day. Yes, it's my everyday SIP, till a certain level is not breached.
CRUDE monthly chart
As mentioned, crude is now in a tight price range and has formed a symmetrical triangle. Any breakout on the upside would open the doors for a good target. This shall act as a catalyst for ONGC.
Meanwhile, a few articles I read, just google and they'll present themselves.
A question in my novice mind, why ramp up production, when/if there is no increase in demand going forward? And with an OMC under its belt, there would be a better synergy of resources, isn't it?
While there's still some time for me to hop in a Tesla, I'll continue to pour this dirty, sticky oil in the tanks of my rides which ONGC digs out.
Oh BTW, I am making some money riding the 'electric' theme, which eventually is paying for both ONGC and what it produces.
Thank you
