dear friends
below attached is chart of CESC Ltd. (NSE) . Is it a valid Flag or Penant
breakout? Seniors pls do comment.....
have a nice day
JB
According to Martin Pring""a pennant is in effect a very small triangle. If anything, volume tends to contract even more during the formation of a pennant than during that of a flag." However, as with Flags, when the Pennant completes you will often observe a sharp spike in volume.
Target Price
It is commonly held that the length of the mast indicates the potential price increase. Like the Flag, the Pennant is considered to be a pause in a downtrend. Following the Pennant, the price typically jumps to replicate the height of the mast, while continuing in the direction of the inbound trend.
This pattern is effectively a pause in a downtrend. The price has moved ahead of itself with a steep rise; therefore market activity takes a break before continuing the downtrend. This pause is reflected in the decreasing trading volume. Similarly, a spike in volume marks the resumption of the downtrend"
Accord. to me there is no triangle formation or Wedge continuation pattern.
therefore it is Flag not Penant
chintan