Upper line is Resistance line and lower line is Support line
You can see many times the tested as well.
In such patterns we can take positional entry at the breakout point. How to calculate the target?
I have marked resistance and support points namely A & B respectively. So the difference between them will give us target after breakout.
Target points = A - B = 467.70 - 400.10
Target points = 67.60
Adding this to point at resistance line that is 467.70 we will get
Target Price = 467.70 + 67.60
Target Price = 535.30
Roughly we get the Target price of Rs . 535.30 which is close to the price from previous resistance.
So this is how the channel breakout pattern works.
Time to achieve the Target : 1-2 Months
Positive signs for breakout :-
If stock fails to breakout, it will take support around 432.
What is your opinion on this? Drop into comment section.
Disclaimer : This is my personal analysis about Chemcon . Do your own analysis before taking any position. I am not responsible for any profit or loss.