INDOTECH - Symmetrical wedge patternNSE:INDOTECH stock has formed a symmetrical wedge pattern following a strong rally, indicating a potential continuation or reversal. Symmetrical wedges often signal consolidation before a significant price move. If the price breaks above the upper trendline, it suggests a continuation of the upward trend with a price target of 2450. Conversely, a break below the lower trendline could indicate a reversal, warranting a stop loss at 1600 to mitigate potential losses.
Trading Strategy:
Bullish Breakout:
Entry Point:
Consider entering a long position on a confirmed breakout above the upper resistance trend line, ideally accompanied by increased volume.
Target Price:
Measure the height of the wedge at its widest point and project it upwards from the breakout point.
Stop Loss:
Place a stop loss below the lower support trend line to manage risk.
Bearish Breakdown:
Entry Point:
Consider entering a short position on a confirmed breakdown below the lower support trend line, with accompanying high volume.
Target Price:
Project the height of the wedge downwards from the breakdown point for the target price.
Stop Loss:
Place a stop loss above the upper resistance trend line.
