Ajanta Pharma - Head and Shoulder Pattern Setup

It is been observed on the daily chart that the price action forms a Bearish Head and Shoulder pattern where sellers are active in the market and put much pressure on buyers to push prices down. Now it shall further move down as the pattern indicates.

Target 1: 1800

Target 2: 1785

Target 3: 1760

Stoploss: 1920
Trade active
Trade closed: target reached: Target 1 and Target 2 reached successfully, Regards
Trade closed: target reached: All Targets reached successfully. Now reaching to support zone as marked. Regards


For these type of trades, may I ask your strategy for SL? Do you put one outside the structure for 1:1RR or just above the previous high? If later, the structure retraces to take down the SL and starts to go down, would you re-enter?

Thanks for sharing!
+2 Reply
NeeteshJain rakefree
@rakefree, I took a stoploss at 1920 as if the price action crosses and closes above that price then it shall invalidate the pattern. I would only close my trade if there is a bullish close above the marked stoploss as that will indicate buyers invalidating pattern and pushing prices up again. I appreciate your curiosity, Regards
Looks like Ajanta approaching below 1800.
If you can analyse Auro. It seems to be breaking weekly support
+1 Reply
@ashpats, Yes, it shall reach out to it by tomorrow. I have put Auropharma in my check list, will update you. Regards
ashpats NeeteshJain
@NeeteshJain, Thanks
ashpats ashpats
@ashpats, 1800 BROKEN
+1 Reply
@ashpats, Yes, it did perform well. Sellers are active. Regards
ashpats NeeteshJain
@NeeteshJain CONGRATS.
sir perfect analysis downside impulse seems may be tom or on monday as per ichimoku also
+1 Reply
@sandy, Yes, it shall move further down. Regards