Before heading towards a trade idea, let me clear you about the pennant chart pattern. ->This pattern is majorly divided into two components 'pole' and 'pennant'.
->This kind of pattern forms when a stock has seen a huge and steep rally which makes a 'pole' component of the pattern. -> After the rally, that particular stock goes into a hibernating period, which we call consolidation. This consolidation phase forms the pennant or flag of the pattern.
->Pennant is generally triangular and is for a short period whereas the flag is rectangular and in for long period.
->In markets, every period has an end when the consolidation phase is over the stock resumes the rally and there is a breakout from the consolidation or the pattern.
->Target is estimated by the pole size, i.e. the previous rally.
After consolidating for almost 1yr ISMT has given the breakout from the pennant pattern with thunder volumes which further indicates the strength of breakout.
This breakout coincides with the monthly breakout of the huge cup and handle pattern.
Strong support for weekly RSI around 40 indicates and also breakout in visible.
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