Iberdrola is breaking out of a Pennant Chart Pattern🟢 Iberdrola is breaking out of a Pennant Chart Pattern
The Spanish renewable energy company Iberdrola is forming a Pennant Chart Pattern amid a years-long bullish rally. This type of pattern is typically ideal for making quick profits as both the pattern and the overall trend indicate the same direction.
✅ What pattern is unfolding in BME:IBE ?
The Pennant is similar to a triangle or a flag, but its shape is distinct. In all cases, these are continuation patterns occurring amid a years-long bullish rally. The buy signal is clear here.
💰 How to trade this chart pattern?
Selling once the break is done is key, you need to wait until is broken and use a tight Stop Loss.
🛡️ The risk management strategy
As we have done in so many previous ideas, remember you can split the position in 2.
- 50% of the position in a take profits, at least, as large as your stop loss (adapt SL and this 1st TP to local supports/resistance levels). In this case, a 3% TP for 2% SL is fine.
- 50% of the position to a price as large as the previous pattern, which would mean a profit of 7%.
✴️ ENJOY AND FOLLOW for more 😊
