Flag Chart Pattern: A short term continuation pattern.
The counter commenced its uptrend from around 185 levels and kissed 271 and witnessed healthy correction. It witnessed gap up opening from 255 levels and posted fresh high of 291.9. Since then it has been consolidating in a broader range of 260 to 290. Today the counter managed to break the said range and gave a powerful close above 290 mark. The counter has developed a typical Flag Pattern on a daily chart. Today's move was supported by heavy volumes and there is Bullish cross over of MACD above zero line. Other indicators too looking quite bullish we expect the counter to commence its fresh trend from here.
Theoretically the length of the Flag Pole is applied to the break-out level to determine the advance. So in our case the length of the Flag Pole is 50 points (i.e. 290-240) which can be applied to break-out level which is Rs.290. So the Target comes around 340. Reasonable stop loss is Rs.275 on a closing basis.
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