The Stock is trading in a Rectangle from a period of 1 year. The breakout from this pattern can be a very good move. As the rectangle has formed at the lower level we are expecting a breakout on the upside which can lead to a reversal pattern and the failure rate of rectangle breaking on the upside from lower level is less which gives a confidence level in entering a trade.

Currently the price has been well respected by the Indicators. There was a shortfall seen in the pattern which is giving a signal for downside breakout but the point of concern is R:R. The R:R is not favourable on the downside there is a limited profit earning well and on the upside breakout at least a movementem of 2-3$ is expected.

Advice : Buy only if the breakout is seen on a closing basis out of rectangle and avoid short.

IAG-AU

Nov 07 2021