Long

Britannia potential break out

Hello all!

Britannia has been forming a pole and flag pattern. It has been consolidating inside the flag since July 2020. Right now the stock has formed a strong bullish candle grazing the upper trendline.

Also, the stock is taking support from its 50 week EMA. Both these factors indicate the possibility of a breakout which opens up an opportunity for going long.

As I am more comfortable with swing reversals, I would have taken a long position if it would have touched the bottom trendline. But if the stock breaks out, a fresh long position can be created after the retest of the trendline. The Risk to Reward ratio will also be decent.

If the stock instead fails and drops again, we can wait till it hits the bottom of the lower trendline of the channel and then create a long position after spotting signs of reversal. The SL will also be minimal.

What's your take on this?

HAPPY TRADING!!!

NOT A CALL

Traders_Town

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