Trade rationale

Moving Averages

Entry Price 105.1 Target: 120 Stoploss: 100 Combination of weekly and daily timeframe with moving average(on weekly chart), static resistance line and trendlines (used in weekly timeframe). Had Drawn two trendlines based on 1) Closing price (dark pink) 2) High prices (light pink) Also plotted 20,50 and 200 EMA on weekly chart . Prices have taken resistance multiple times from the trend lines . On 8th March 2021, prices broke the trend line , but didnt give a closing above the trend line. Instead it took resistance from 105 level which is a important static resistance level (Green horizontal line marked in daily chart). If prices now break the high of 8th March 2021 which is coinciding with static resistance level 105 with volumes, IOC can touch 200 EMA on weekly chart (120) With a stoploss of 100, risk reward ratio of 1:3 is extremely favourable.