INDOTECH - Symmetrical wedge pattern

20. Juni

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.