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BERGER PAINTS – TRIANGLE BULLISH BREAKOUT Witnessed during July 2019

The Triangle pattern indicates trend consolidation. The price range narrows down over a period and may break out in any direction. The Triangle bullish breakout is witnessed in the “Berger Paints” during July 2019. The conditions and qualification of the pattern are explained below.

Conditions and Qualification:

1) 5 wave corrective pattern (A-B-C-D-E) should form a triangle shaped structure – Yes It is formed.

2) The triangle area should be minimum of 1.5 months. – Yes. In this case, it is ~ 5 Months.

3 ) Triangle breakout expected around 70% Zone – Yes. It is witnessed from the chart.

4) Volume required to conform the breakout – Yes. High volumes noticed during break out.

The trading plan: LONG

Entry point: @ Rs.332 (when the triangle breaks out upwards)

Stoploss: @ Rs.303 (previous lower point in the triangle)

Target: @Rs.361 (Considering the Risk to reward of 1 : 1)

Trading result: Target achieved in 9 days.

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