Allied Digital Services Limited - Cup and handle breakout
ADSL has formed a cup and handle breakout on a weekly timeframe and is currently retesting the previous resistance zone. It seems like a good time to initiate a trade, as the stoploss would be relatively small, being just below the crucial zone which is now acting like a support.
Although the target is relatively small as per the price pattern, it is best to use a trailing stoploss instead of having a predetermined target. Why? Because this is not a large cap stock, and hence can generate a strong momentum, which one might miss out on if they exit at a predetermined price.
That said, this is not a buy recommendation, please do your own research before trading, and do maintain healthy risk management practices.
Although the target is relatively small as per the price pattern, it is best to use a trailing stoploss instead of having a predetermined target. Why? Because this is not a large cap stock, and hence can generate a strong momentum, which one might miss out on if they exit at a predetermined price.
That said, this is not a buy recommendation, please do your own research before trading, and do maintain healthy risk management practices.
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