Hello Traders,
As you know I am great fan of Patterns and keep finding various patterns which you may have already seen in our many blogs posted.
In todays, blog I found one stock which is also a technical pattern Symmetrical Triangle Pattern.
For reading my earlier Triangle pattern observations and studies CLICK HERE Read more: SYMMETRICAL TRIANGLE PATTERN STOCK POSING FOR 44% UPSIDE POTENTIAL
Chart Source: Trading view
Stock Name: JSW Energy View : Bullish
In the above Weekly Chart,
We can see the Line TL1 which is a descending trend line & TL2 ascending trendine.
Its assumed the stock was trading in this range for more than a year now. The TL3 is the new ascending trendline which is showing the stock has not been falling below the line and constantly inching upwards.
the breakout above the TL1 suggests its not just a breakout but quite a large Leg candle showing breakout.
The stock may see some small resistance around 360-369 which is also a 78.60% retracement level and at point c high of sept 2022.
In the above chart the stock is showing a large potential to rise up to 495 in the coming 6-9 months the stock will find support around 323 & 295-269 level
If it fails to sustain above 280 and falls below it 270 then we can consider the logic is not going to work.
However the odds are in favour, lets say the stock is also forming higher high and higher low pattern.
As it made a high of point c & a low of point d which is already higher than point b.
It is very important for a stock to not go below the earlier low in order to scale new highs, and point e is showing a strong breakout which will be confirmed once the stock rises above 369 i.e. point c
Traders need to ascertain their risks before taking positions read disclaimer
Happy Trading…..
Be a Wealthy Trader…..
