BPCL (D): Forms Bullish MorningStar, Challenges Major Resistance
After reversing from a short-term downtrend, BPCL (Bharat Petroleum Corporation Ltd) has flashed a powerful bullish signal. However, this newfound momentum is now running directly into a major, long-term resistance trendline that has capped its progress, setting the stage for a critical battle.
The Bullish Setup: A Morning Star at Support
Today's price action (Monday, October 27, 2025) was highly constructive for the bulls:
- Price & Volume Surge: The stock rallied +3.80% on a strong volume of 11.77 million shares.
- Classic Reversal Pattern: This move completed a "Morning Star" candlestick pattern. This is a classic three-candle bullish reversal pattern that often signals the bottom of a downtrend and a new shift in momentum.
Broad-Based Technical Strength
This bullish pattern is strongly supported by a powerful alignment of indicators across all major timeframes (Monthly, Weekly, and Daily):
- Short-Term EMAs: All three timeframes are in a bullish Positive Crossover (PCO) state.
- RSI (Relative Strength Index): The RSI is also in a rising trend on all three timeframes.
This multi-timeframe alignment indicates that the underlying momentum is broad, synchronized, and strengthening.
The Immediate Hurdle: Long-Term Resistance
Despite these bullish signals, the stock is now positioned less than 2% below a major long-term resistance trendline formed since its All-Time High. This line represents a significant historical barrier for the stock.
Outlook and Key Levels to Watch
The stock is at a clear "prove it" moment. The outcome of the battle at this resistance will likely determine the next major move.
- Bullish Breakout Scenario: A decisive close above the long-term resistance on high volume would confirm the breakout and validate the Morning Star pattern. This would signal a continuation of the new uptrend, with a potential next target of ₹375.
- Bearish Rejection Scenario: If the stock fails to breach this resistance and momentum fades, it could be rejected. The first key support level would be the bottom of the Morning Star pattern, around ₹325.
In conclusion, the price action in the coming days is critical. All eyes should be on this key resistance level for either a confirmed breakout or a rejection.
The Bullish Setup: A Morning Star at Support
Today's price action (Monday, October 27, 2025) was highly constructive for the bulls:
- Price & Volume Surge: The stock rallied +3.80% on a strong volume of 11.77 million shares.
- Classic Reversal Pattern: This move completed a "Morning Star" candlestick pattern. This is a classic three-candle bullish reversal pattern that often signals the bottom of a downtrend and a new shift in momentum.
Broad-Based Technical Strength
This bullish pattern is strongly supported by a powerful alignment of indicators across all major timeframes (Monthly, Weekly, and Daily):
- Short-Term EMAs: All three timeframes are in a bullish Positive Crossover (PCO) state.
- RSI (Relative Strength Index): The RSI is also in a rising trend on all three timeframes.
This multi-timeframe alignment indicates that the underlying momentum is broad, synchronized, and strengthening.
The Immediate Hurdle: Long-Term Resistance
Despite these bullish signals, the stock is now positioned less than 2% below a major long-term resistance trendline formed since its All-Time High. This line represents a significant historical barrier for the stock.
Outlook and Key Levels to Watch
The stock is at a clear "prove it" moment. The outcome of the battle at this resistance will likely determine the next major move.
- Bullish Breakout Scenario: A decisive close above the long-term resistance on high volume would confirm the breakout and validate the Morning Star pattern. This would signal a continuation of the new uptrend, with a potential next target of ₹375.
- Bearish Rejection Scenario: If the stock fails to breach this resistance and momentum fades, it could be rejected. The first key support level would be the bottom of the Morning Star pattern, around ₹325.
In conclusion, the price action in the coming days is critical. All eyes should be on this key resistance level for either a confirmed breakout or a rejection.
Disclaimer: This analysis is my personal view & for educational purposes only. They shall not be construed as trade or investment advice. Before making any financial decision, it is imperative that you consult with a qualified financial professional.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer: This analysis is my personal view & for educational purposes only. They shall not be construed as trade or investment advice. Before making any financial decision, it is imperative that you consult with a qualified financial professional.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.