Hi soumya_b ,
I have a query abt. ascending triangle formation ..Please find attached image file for HeroHonda - Daily Chart ..Just wanted to know is there a building/formation of an Ascending triangle looking at the chart ?
Regards,
Raju
Hi Raju,
In my view, there is no Asc Triangle here for following reasons -
1) Asc Triangle is continuation pattern.
2) It occurs in an uptrend as Bulls stop to take breath
3) It also comes at the bottom of downtrend and indicates reversal formation.
In case of Hero-Honda, there was no up or down trend at the place where your marked triangle is shown (22nd-Jan). HeroHonda has been in sideway move since long time hence there is no question of trend continuation or trend reversal. So I will search for breakout patterns on this chart rather then spending time on finding the continuation pattern.
btw, it has already given "Bearish Harami" pattern on Monday 7-Apr and it is already close to strong resistence line around 775 (touched almost 7+ times in the past) so it will be interesting to watch the stock near resistence line.
Happy Trading.
- Anup