A pennant can be used as an entry pattern for the continuation of an established trend. The formation usually occurs after a sharp price movement that can contain gaps (known as the mast or pole of the pennant) where the pennant represents a period of indecision at the midpoint of the full move, consolidating the prior leg. The price is contained by a small symmetrical triangle that begins wide and converges to a point as the pattern develops.
Bullish pennants can form after an uptrend, bearish pennants can form after a downtrend. The pattern has completed when price breaks out of the triangle in the direction of the preceding trend, at which point it will likely continue in this direction. Conservative traders may look for additional confirmation of the trend continuing. The target can be estimated using the technique of measuring the length of the mast and extending it in the direction of the breakout. A common stop level is just outside the pennant on the opposite side of the breakout. Pennants should not be mistaken for triangles, which are distinct price patterns.
If closes below 1100 (i.e. a breakdown), Sell: 1095, SL:1128, Target1: 1072 Target 2: 935 levels
Disclaimer: I am a novice in the markets, so please don't construe your trade basis this chart. I post it to see if my views holds true.
HCC Entry 15.15 | Stop 13.95 | Target 20
8% Risk | 32% Reward
1: 4 RR
Continuation Pattern
Bullish Pennant
Price highs move slightly lower and price lows move slightly higher. Drawing a trend line connecting price highs and then another connecting price lows form two converging lines which are an identifying feature of the pennant.
IDENTIFICATION ...
AUROPHARMA SHORT TRADE(IF PENNANT BREAKOUT DOWN)
AUGUST FUTURES
SHORT AT THE BREAKOUT OF THE PENNANT AFTER
2:30 THE BAR WILL BE COMPLETE A BREAK BELOW
THE SUPPORT LINE OF 684 IS A GOOD INDICATION
SHORT@684
STOP@590
TARGET@666
LOT:1000
QTY:2
Prices are consolidating in the form of a pennant for more than a couple of months. Expecting a nice breakout on the upside from this pattern. Since the range is broad, the price breakout will have a good move. Hence will enter only on further confirmation. Will update further on this.
Thanks.
NSE:MRF just given breakout on chart and now stock looking for level 80K in next few days there is support on level 75,200. for more detail check in chart with notes too.
This is going to be an intraday setup based on the pennant formation. Will go long at 616-619 zone for a target of 628.
Entry - 616-619 zone
SL - below 612
T1 - 623
T2 - 628
For study purpose
Thanks.
peannant pattern:
-breakout on either side can determine who is in control,upper side for bulls and lower side for bears.
-it still seems bullish, confirmation will be given on the breakout.
The stock is in consolidation phase in the form of a pennant after a bull run. Expecting to go long at 910 zone for a target of 940.
Entry - 910 zone
SL - 895
T1 - 920
T2 - 930
T3 - 940
For study purpose
Thanks.
Details Mentioned In Chart.
Targets will be updated later.
Positional View for 2 Months.
Please Consult Your Financial Advisor Before Taking Any Decision.
I am not SEBI Registered Financial Advisor.
The stock has nicely formed the Pennant Pattern and gave breakout with higher volume. A little more volume would have made it more reliable however this pattern has a Flat base before forming the pattern. Statistically Flag/Pennant pattern after flat base performs better. One can buy the stock for a target of 2280 - 2300 by providing the suitable SL.
Disclaimer : ...
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