stock is trading with bullish pennant pattern . usually trades are taken when upper price trend line is taken out with volume . our trade can be initiated at lower price support trend line where its trading now . we can extract the up move from this support zone too . bullish pennant forms after a big up move of a stock to form pole . followed by a corrective phase in a triangle similar to symmetrical one, with higher lows and lower high respectively to form pennant.
trade set up : 1. buy till 310 2. keep stop loss as 288 on closing basis 3. targets : 335 / 353 / 374 / 404 /446 /500+++ long term pick technical set up : 1. bullish pennant pattern 2. trend line 3. support & resistance
Can pennant be drawn on a monthly chart? By its very nature pennant should not last more than few days I thought. If you see the daily chart, there is a descending triangle with RSI moving between 30 and 50 both signs of bearishness..
HARMONICSANAND
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@Punsom, yeah there is descending triangle in both weekly and daily charts ... but strong base support formation seen at 300 to 298 levels . i have given buy based on support trend line & not on bullish breakout pennant . and also bullish harmonics . lets see with stop loss held as mentioned . thanks dear for the mention to the chart posted.
architk
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Is low volume concerning? keep up the good work.
HARMONICSANAND
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@architk, volume is low in corrective phase , in up move we can see a good volume breakouts