praveen.bhatiya

Flag/Pennant Breakout !

Long
NSE:MINDTREE   MINDTREE LTD
The stock is clearly in strong uptrend. Recently it has formed a perfect Pennant pattern and gave breakout yesterday with good volume by closing above the pattern high. The pattern looks promising moreover this small pattern gives fast result. One can enter the long now or on small pull back for a target of around 900.

Disclaimer : All stock recommendations and comments are my personnel view. please take financial consultancy for trading decision.
Trade active
Trade closed: stop reached
Comment: It was not moving as expected after flag breakout so close the trade with small loss.

Comments

Don't you think RSI between 70-80 shows overbought for Mindtree ?
Reply
@riyankok, Good observation but it is normal for Flag pattern moreover in uptrend even without this pattern stock may remain in overbought zone for some period.
+1 Reply
riyankok praveen.bhatiya
@praveen.bhatiya, Dont you think sell on rise will be good strategy
Reply
@riyankok, Frankly speaking I don't think much, if i see a pattern/setup i act upon it as recommended. It is also true that all patterns fail including Flag but that risk is part of the game.
+1 Reply