[Positional] IGL Long IdeaIGL has created a very good 'Flagpole Pennant pattern on daily basis.
There was sharp upmove observed from the levels of 350 -440 (8 aug - 16 Aug). After that the stock has been consolidating only from last 10 sessions and the range is getting smaller and smaller creating a pennant.
What Is a Pennant?
- A pennant is a type of continuation pattern.
- When there is a huge movement in the stock, it forms a flagpole like structure- a very straight up move of more than 3 huge bullish candles.
- After this strong up move there is a little break to buying and consolidation begins - consolidation creates a triangle shape attached to a pole - called as pennant.
- Pennant formation normally says that there is still some buying left and this is just a break and the trend will again continue in the same direction as the initial large movement if it breaks on the same side as initial trend.
We are supposed to enter the trade once the price breaks out of this consolidation triangle - Pennant. It is advised to only take trades in the direction of the initial trend. Stop loss can be the low of the penannt.
Entry:- 424-430 (whenever price breaks the pennant on daily closing candle basis)
SL:- 402 (low of the Pennant)
Target :- 477
