A pennant is a continuation pattern which forms when the price rallies/falls sharply, then moves sideways or slightly to the downside/upside. This sideways movement typically takes the form of a small triangle (pennant). The sideways period is often followed by another sharp rise/fall.
The Nifty just broke down from a Pennant - marked in red.
Half Hourly Chart
The momentum
seen during the forming of the flag pole -marked in green-- could continue once the pattern
completes. Therefore expect a move down for the Nifty of a measure the size of the flag pole from the point of breakout.
Half Hourly Chart
The pennant target measures to 9675 which is also strong support area marked in red dotted line. The 50% fibo support of move from 7894 to 11171 is at 9511. Support on rising wedge on monthly charts, shown in my last post, is at 9500.
Monthly Chart
Happy Trading !!
Lakshmi Ramachandran
1 comment:
Your blog always having very useful post. Thanks for sharing Forex trading tips
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