NIFTYIT/NIFTY relative strength chart has broken out of its bull flag on the daily chart. Going by this, we are likely to see IT stocks continue to outshine in the near future.
What Is a Bullish Flag?
Bullish flag formations are found in stocks with strong uptrends and are considered good continuation patterns. They are called bull flags because the pattern resembles a flag on a pole. The pole is the result of a vertical rise in a stock and the flag results from a period of consolidation. The flag can be a horizontal rectangle but is...