Shriram Transport is stuck in a flag and Pole pattern here. The Pole and flag patterns are famous for giving great breakouts. It's at the bottom trendline of the flag which I believe is a good place to buy as the Risk is too small and Rewards are big.
Apart from the pole and flag, there are multiple other reasons to go long:
1) Stock is currently in its support zone.
2) It is being supported by its 50 week EMA and 200 daily EMA.
Thus there is a strong triple confluence and the Reward to Risk ratio is also favorable.
Flag structure is visible but it's a weekly time frame chart so it'll be a bit prudent to enter only after some signs of confirmation, buying a bit higher doesn't bother people using weekly charts.
Second thing is 30 & 40 Weekly SMA is generally used on weekly charts. 40 corresponds to 200MA on daily. Also make sure that the slope of MA line is up as well.
AKJ46
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@thelastbull, Thanks for the 40 weekly SMA info. I learnt something new! Also, I personally prefer hitting a small Stop loss instead of confirmations because, after confirmations, the stop loss becomes bigger. This is the reason why I'll be entering right now because the SL is really small Nothing wrong with what you said though. Thank you for sharing your views!