Bombay Burmah Trading Corporation Ltd (BBTCL): BUY with a Stoploss of 640 and Target of 750

BBTCL is in an uptrend on the weekly charts from the level of 250. The trend is intact, use this correction to enter the stock while it has strength though it appears to be overbought. One can buy overbought stocks as long as they still have steam.

The daily charts, as shown on the left, show a nice re-tracement of about 50% of the run from the earlier pivot low of 390 to the pivot high of 790 to the level of 585.
It is making a nice upmove with higher highs and higher lows from the levels of 585, forming a new pivot low, followed by pivot high of 680 and a higher pivot low of 600.

The stock is in a resistance area. But there are no signs of weakness as bulls look in charge. If it breaks the resistance of 680, it will be on its way to make a higher pivot high, further confirming the upmove and regaining the intermediate uptrend.

If you turn on the Bollinger Bands, you see a squeeze in the making. We may see a big move in any direction. Mostly it is in the direction of the major trend:Up in this case.