Right-angled Broadning Triangle formation is clearely visible in the daily charts, marked with yellow dotted lines. Volumes are also expanding along the way, supporting the pattern. But past one month volumes are declining, which indicates some weakness in the up move.
Now, Cup and Handle Pattern has formed exactly below the resistance line of the Righ-angled Broadning Triangle, marked as thick Red line. It is wise to wait until this resistance line is broken convincingly to take up the long trades even for Cup and Handle. Once the resistance line is broken convincingly, the stock could be bought and held for longer term as it has the potential to reach upto Rs.2200.
Update on 8th June: Long Not triggered, as break out didn't happend with volumes.
3 comments:
Hi..
There is also a possibility of an "Inverse Head & Shoulder" pattern possibility, provided this uptrend stops after 2-3 days and start to correct.
A redrawn neckline might give a starting point for the other shoulder, possibily 1600 which is a gain of 10% from the current level.
This is an alternative scenario.
Best regards.
ilango
Hi..
This is the best presentation a blog can have...why change it? As the gentleman suggested, you get more clarity on clicking on the chart.
Content is what matters ultimately. Stay with it.
Best regards.
ilango
Yes ilango Sir, Inverted Head and Shoulder possibility is very much there like you projected. Will surely watch out for that.
Thanks you for your suggestion, I shall take your word as-is and will not change any thing :)
ps: its really nice to have you comment on my blog :)
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