Momentum Trades — Trades 1 & 2 — (ONGC & CIPLA) — 7 March 2022

Here are my stock trades/set-up explanations & charts

ONGC: Oil & Natural Gas Corporation

Energy, Oil & Gas sectors are bullish, and thus, any energy / Oil & Gas will be an easy hunt if a trader finds the set-up.

How and Why do I trade ONGC today?

1. The MACD and Stochastics set up on the daily chart were looking promising.

2. Energy, Oil & Gas is a bullish sector

3. RSI was above 50, which gave me some confidence

4. MACD had a Golden Cross (GC) above the zero line

5. Volume was picking up and went above its moving average

I usually keep a stop loss of about 5% (unless the stock price is very high), and for ONGC, I entered the trade with stop loss at previous candles close. I trade with a risk/reward of at least 2 to ensure my overall portfolio remains profitable.