As a trader it is important to identify price patterns and once the pattern is clear then one can ride the trend with objective tools for targets to book profits with the help of wave counts, patterns, channels, etc. Recently we were able to capture the upmove of Apollo Hospital explained below.
Flags are excellent chart pattern trading candidates; they’re generally small, which means relatively small risk and quick profits. A flag chart pattern is formed when the market consolidates in a narrow range after a sharp move. The flag portion of the pattern must run between parallel lines and can either be slanted up, down or sideways. Enter a trade when the prices break above or below the upper or lower trendline of the flag. A stop-loss is set just outside the flag on the opposite side of the breakout.
Below is the chart of Apollo Hospital show casing the pattern formatio n and how it helped in capturing the upmove.
Apollo Hospital 60 min chart:
Despite Nifty Index moving in down trend, Apollo Hospital has sustained its upmove and moved in line with its sectorial index. Also the stock has been outperformer within the pharma space and has showed strong rise from 1300 levels. The stock is exhibiting impulsive up move and so should be a preferred bet on long side.
As shown on the hourly chart, the stock looks like it is breaking out of a flag pattern formation, the target for which is at ….. levels which is the length of the pole projected on upside. Currently wave iii is ongoing which is usually the largest wave in an impulse pattern. On the conservative side we can expect the price to move towards the channel resistance near…..in the short term.
Such kind of trends can be captured with the help of Elliott wave and Channeling technique and patterns and above is the example of the same. To trade such opportunities subscribe to “The Financial Waves Short Term Update” and for more information visit Pricing Page
Also we gave intraday calls on Apollo Hospital and succeeded in booking profits on pattern break out.
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