Technical trades-Q&A

[Saint]

Hi Traderji,

Is that an ascending triangle forming on the daily chart of ITC?If so,is it worth a shot on a breakout.....and what should be the target areas?

Thanx

Saint

 

[Traderji]

Trading Technical Analysis of ITC

Very observent saint,

ITC is indeed forming a small contracting triangle or pennant pattern (one of my favourite trading pattern).

Generally sharp explosive moves arise out of such patterns.

You can read more on this pattern in my post here.

Please see tha attached chart for my comments/trading signal.

 

[Saint]

Re: Trading Technical Analysis of ITC

Traderji,

Thanx for the reply on ITC,and the education on the pennant pattern.There's a lot we learn from you daily.........thanx again!

Saint

 

[samaruna]

Re: Trading Technical Analysis of ITC

Hi,

Excellent example. Thanks for your educative replies.

Regards
Samaruna

 

[Saint]

Re: Trading Technical Analysis of ITC

Took ITC at 1040,booked 1/3rd at 1091.........sweeeet!Great call and thanx Traderji!

 

[Traderji]

Re: Trading Technical Analysis of ITC

Took ITC at 1040,booked 1/3rd at 1091.........sweeeet!Great call and thanx Traderji!

I am happy to hear that saint.

It's always great to hear and get some feedback from you all!

 

[samaruna]

Re: Trading Technical Analysis of ITC

TraderJi

Is the stock having further upside? I am holding 50 shares taken at Rs.1058/-

Regards
Samaruna

 

[Traderji]

Re: Trading Technical Analysis of ITC

TraderJi

Is the stock having further upside? I am holding 50 shares taken at Rs.1058/-

Regards
Samaruna

A conservative or short term target can be arrived at by measuring the height of the pennant (Rs. 50.00) and adding it to the breakout point (Rs. 1050.00) which gives us a target of Rs. 1100.00.

ITC did indeed go up to 1098.00 yesterday, therefore I would book profits for the short term and wait for a pullback to the 1050 levels before considering to BUY ITC again.

 

[Saint]

Re: Trading Technical Analysis of ITC

Booked 2nd 1/3rd at 1107........great call.Thanx again,traderji!

 

[Saint]

Broadening Formation in Wipro

Looks like a broadening formation forming in Wipro 60min charts.....usually happens in peaks rather than troughs.A decline below the lower trendline will be a huge move down.....If this fails and breaks the upper trendline,will be a huge move up.......Interesting!!