CIPLA LTDLong
CIPLA -Flag Pattern
Updated
Flag Pattern basically in simple language a figuratively a pole and flag - drawn on the chart
How does a flag pattern matters in trading? Flag patterns signify trend reversals or breakouts after a period of consolidation. So the important point to note here is CIPLA would be out of consolidation either will fall or rise from here.
Usually, the break out or reversal sync up with some news or event, interestingly CIPLA posted decent quarterly results, though doesn't beat the estimates but quite good.
So if we try to check all the items from the flag pattern checklist
How to Trade it
due to the last checklist item bullish candle - safer approach of buying above high can be taken. Just in case if the breakout is fake will save from losses
Entry, Target marked on the chart
Can use 20 DMA as trailing stop loss
Trade Safe
How does a flag pattern matters in trading? Flag patterns signify trend reversals or breakouts after a period of consolidation. So the important point to note here is CIPLA would be out of consolidation either will fall or rise from here.
Usually, the break out or reversal sync up with some news or event, interestingly CIPLA posted decent quarterly results, though doesn't beat the estimates but quite good.
So if we try to check all the items from the flag pattern checklist
- Pattern visible - Yes
- Volume increase near breakout - Yes
- News on the horizon - Yes
- trendline breakout using GAP UP - yes
- Bullish candle - higher high , lower low - but red candle
How to Trade it
due to the last checklist item bullish candle - safer approach of buying above high can be taken. Just in case if the breakout is fake will save from losses
Entry, Target marked on the chart
Can use 20 DMA as trailing stop loss
Trade Safe
Trade active
Lets see how it unfoldsTrade closed: target reached
Target 1 reached .. Target 2 also in sight
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