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Notes Technical Analysis - 29

The document describes listing breakout patterns, including an initial market euphoria followed by price consolidation and a new high before drifting downwards for two years as the price justifies business valuations. It then notes the price will rise again as the business improves, reaching an all-time high above old resistance levels, with a price target of double the breakout level within one year. Two bearish patterns are also summarized: a head and shoulders reversal with a price target of 400 in 3 candles, and a double top formation with a price target of 450.

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41 views1 page

Notes Technical Analysis - 29

The document describes listing breakout patterns, including an initial market euphoria followed by price consolidation and a new high before drifting downwards for two years as the price justifies business valuations. It then notes the price will rise again as the business improves, reaching an all-time high above old resistance levels, with a price target of double the breakout level within one year. Two bearish patterns are also summarized: a head and shoulders reversal with a price target of 400 in 3 candles, and a double top formation with a price target of 450.

Uploaded by

Sona Gavde
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Listing Breakout Pattern

- Market euphoria at the time of listing.


- Price begins to consolidate after which it makes a new high.
- Price is overvalued and thus drifts downwards for the next 2 years.
- Price will justify the business valuations and will trade at this level for the next 8 to 10
months.
- As the business improves the price will start moving upwards.
- Price will reach on all time high level.
- Breakout above the old resistance.

Price Target = Double of the breakout level.


Time Target = 1 year.

Bearish Patterns
• Head and shoulders Reversal pattern of Pre-rating Trend:-
This formation is characterized by two small peaks on either side of a larger peak.

Price Target: - 500-100= 400/-


Time Target: - No of candles
3

Double Top
These formations are similar to the Head and shoulder formations, but there is no head.
Draw chart here
Price Target = 500- x
2
= 450/-

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