Top two trading set-ups to watch out for Wednesday

The stock is inside the leading quadrant of the RRG when benchmarked against the broader NIFTY500 Index.

TATAPOWER

The stock marked its high point near 267 in October 2021; since then it has been under defined and ranged consolidation. It has remained under a broad trading range of 210-250 levels. Few signs have emerged that hint at a potential resumption of an uptrend. The daily MACD has shown a positive crossover a day before; it is now bullish and above the signal line. The most recent up-days have been with above-average volumes. The RSI is neutral and does not show any divergence against the price. However, when subjected to pattern analysis, it is seen breaking out from a falling trend line resistance which is bullish. The OBV (On Balance Volume) is already at a high before the actual price breakout.

ONGC 

ONGC tested its high of 172.95 and after that, it saw a corrective decline. The stock made a fresh high recently and in the process, it made a strong attempt to take out and break above a classical Double Top resistance. While the fresh breakout is yet to take place, the stock is seen fiercely consolidating near the high point since the last couple of days. The daily MACD is bullish; the PPO remains positive. The widening Histogram shows a return of incremental momentum on the upside. The RSI is neutral. The stock is inside the leading quadrant of the RRG when benchmarked against the broader NIFTY500 Index. Any sustenance above the 169-171 zone will lead to a strong upward revision of prices in the near term.