BHEL - Up-Flag on Daily Chart

7 Haz 2021

BHEL was in a consolidation for almost one month after an impressive up rally. The price gave an upward breakout to the consolidation on a daily candle on 7th June 2021 and closed at Rs.77. The breakout was supported by increased volume. I anticipate the price target of Rs.106 in 12-16 daily candles. I suggest the stop loss at Rs.74. The expected risk-reward ratio is almost 1:10. The stop loss should be followed for the first 4 candles. Thereafter, the profit booking/ exit decision should be based on attainment of the price target or downward crossover of 26 EMA by 5 EMA whichever happens earlier.
NOTE: This idea is an attempt to predict the future price movement. Investment decision based on this idea shall be solely at the risk of the investor.