Shree Cement forming bear flag pattern.Shree Cement has been consolidating in a narrow range for around 4 weeks.
The stock has formed a bull trap on the daily time frame, giving a break out and getting back to the consolidation zone.
It has been facing a rejection from 20 DMA and a bear flag is there.
Moving averages on the hourly time frame are close and the stock can give either side break out/down.
3 point confirmation.
1. Bull trap on daily time frame.
2. Trading below 20 ema (on weekly time frame).
3. Rejection from 20 DMA.
An intraday or swing trade can be initiated once the stock break out/down form the box.
For option traders next month option can be traded as tomorrow is monthly expiry.
Target (upside) :- 22000, 200 DMA
Target (downside):- 20200, 19500
The stock has been trading in a range of 3.5% from end of september. A nice movement can be captured in this stock once is closes outside the box and sustains the levels.
Wait for the price action near the levels before entering the trade.
