Sesa Goa has broken out of Bullish Pennant Pattern and it does not surprise . I had covered the stock a month back to buy at 175 stock now crosses 194 still look highly bullish
http://trendzofmarket.blogspot.in/2013/09/is-sesagoa-turning-around.html
LETS CHECK THE NEW DEVELOPMENT IN THE STOCK
What is a Bullish Pennant Pattern?
Formation of Flagpole: To be considered a continuation pattern, there should be evidence of a prior trend. A sharp advance is must before the formation of pennant. The Sharp advance looks like a Flagpole
Pennant: A pennant is a small symmetrical triangle that begins wide and converges as the pattern matures. The price action remains within the converging trend lines. pennants are short-term patterns that can last from 1 to 12 weeks
Once a pattern is in place – one should watch for Breakout from the Pennant.
Here’s the Sesa Goa Chart doing the same
http://trendzofmarket.blogspot.in/2013/09/is-sesagoa-turning-around.html
LETS CHECK THE NEW DEVELOPMENT IN THE STOCK
What is a Bullish Pennant Pattern?
A continuation pattern in technical analysis formed when there is a large movement in a stock, the flagpole, followed by a consolidation period with converging trendlines, the pennant, followed by a breakout movement in the same direction as the initial large movement, the second half of the flagpole ~ As per InvestopediaTechnical Characteristics:
Formation of Flagpole: To be considered a continuation pattern, there should be evidence of a prior trend. A sharp advance is must before the formation of pennant. The Sharp advance looks like a Flagpole
Pennant: A pennant is a small symmetrical triangle that begins wide and converges as the pattern matures. The price action remains within the converging trend lines. pennants are short-term patterns that can last from 1 to 12 weeks
Once a pattern is in place – one should watch for Breakout from the Pennant.
Here’s the Sesa Goa Chart doing the same
There is a Flagpole and
formation of pennant from which stock broke out this week and on good
volumes. The stock can shock on the upside. The breakout is not
surprising and I covered the stock a month back.
