Ultratech Cement is continuing a Descending Flag Pattern and is currently inside the flag.
Now, How to trade a Descending Flag Pattern?
Descending Flag Pattern is a bearish continuation pattern so we will have to wait for the stock to break out in our direction for the trade to be active.
Trade will be active inside the blue rectangle, as we will have a break out from our pattern and we can short the stock from there onwards.
Our Stop Loss will be the red trend line. Due to volatility in the markets, we may have a false breakout and the stock might rush back into the flag so we won't get stuck in the trade with a tight Stop Loss.
Our First target will be around our last low and then we will have to trail our profits as there's uncertainty due to volatility. We will ride along as long as the market wants us to.
"The punchline here is to Wait for a Break Out"
Till then,
Stay Safe & Trade Safely.
Now, How to trade a Descending Flag Pattern?
Descending Flag Pattern is a bearish continuation pattern so we will have to wait for the stock to break out in our direction for the trade to be active.
Trade will be active inside the blue rectangle, as we will have a break out from our pattern and we can short the stock from there onwards.
Our Stop Loss will be the red trend line. Due to volatility in the markets, we may have a false breakout and the stock might rush back into the flag so we won't get stuck in the trade with a tight Stop Loss.
Our First target will be around our last low and then we will have to trail our profits as there's uncertainty due to volatility. We will ride along as long as the market wants us to.
"The punchline here is to Wait for a Break Out"
Till then,
Stay Safe & Trade Safely.