OIL INDIA – BULLISH FLAG PATTERN

Dear All,

Hope you all made awesome money in PSU Banks specially my pick “Canara Bank”.. Thanks to Finance Minister.. !!

Now There is another Setup which came to my radar..!!

“OIL INDIA – BULLISH FLAG PATTERN”

Below is the Chart for your reference !

Daily Chart

So Trade Setup is given below –

Buy above 354.. Add more on dips around 340 Target 400-420 ! 

Will Update the Stop Loss If Triggered !!

Regards

Sid

Learning Here – “Bullish Flag Pattern”

Flag: A flag is a small rectangle pattern that slopes against the previous trend. If the previous move was up, then the flag would slope down. If the move was down, then the flag would slope up. Because flags are usually too short in duration to actually have reaction Highs and reaction Lows, the price action just needs to be contained within two parallel trend lines.

TRADE SETUP – CANARA BANK

We have already seen that in Banking space private banks are the out performers and PSU Banks are under performers .

Now I think one can start looking at some investments or trade towards PSU banks.

My First pick is Canara Bank. There is a positive divergence RSI (14) and also there is a falling wedge Pattern.

Buy above 311 Target 325-330 SL 297

Below are the charts for your reference.

Canara Bank Daily Chart
Canara Bank Line chart Daily

Learning –

Positive Divergence

Falling Wedge

Century Textile – Diamond Pattern

Dear All,

As I said earlier I like to trade best setups mostly positional trades.

Another great setup is there now with Century Textile which has made a “DIAMOND PATTERN”

Be alert for the Breakout!

Trade setup will be –

Sell below 1285 SL 1305 Target 1265-1255-1240

Buy above 1300 SL 1285 Target 1315-1325-1340

Century textile Hourly Chart

Learning here – DIAMOND PATTERN

A diamond pattern is composed of support and resistance levels. In case of breakouts of a diamond chart pattern, the line through the support points is broken. A diamond Pattern can be Bearish or Bullish. It can be a identified as a continuation or reversal pattern of a prior trend.

Identifying the reliable breakout of any pattern is very crucial in successful trading. We generally know two rules of reliable breakouts. Firstly, a reliable breakout happens when a candle opens out of the area. Secondly, the volume should be increased when the breakout takes place.