For Ashok Leyland, the flag pole formed around 30th May 2017. The price raised from Rs.82 to Rs.95 within 2 days forming a steep pole. There on, the price oscillated between Rs.95 (resistance level) and Rs.91 (support level) – forming a flag. The flag formed between 31st May 2017 to 27th June 2017. During the flag formation, the volume was low confirming a lack of fight from bears and the beginning of domination from the bulls.
If the price breaks the resistance of 95, we can enter a long position. Hence the target price is Rs.95.5. The stop loss should trigger if the price goes down breaking the previous support level. Hence the stop loss can be kept at 90.8. This will result in a risk of Rs.4.7. Hence the return should be Rs.4.7. So, the target price should be Rs.100.2. The stock broke the entry price (95.5) on 30th June 2017. The volume was also high on the breakout confirming huge domination of bulls. The target price achieved on 5th July 2017.