The stock has formed an ascending triangle. An Horizontal Resistance line and a slanting Support Line. The Ascending Triangle breakout at downside has a good success ratio compared to breakout at the upside. There are throwbacks and pullbacks seen in the pattern and are common, the failure rate at downside breakout is less compared to upside.

The important thing to notice is that the formation of the pattern is at the TOP, so majority of the time we expect the breakout to be on downside, if the breakout is not seen on the downside we can expect the stock to continue its upside move.

The RSI is trading at 56.61, if the RSI closes below 50 we can expect the RSI to touch 30 levels.

If the stock breakout at the downside the RSI will be a measure oscillator to look at.

The EMA's are flatten, till the time the EMA doesn't follow trends we won't go long.

Advice : Sell If the breakout is seen on the downside with RSI and EMA following.

Sell after the breakout

Aug 15 2021

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