Classical Head & Shoulder chart pattern formed in Bata India and it takes 3 months to complete the pattern, now waiting for the neckline break down below 1450.
Please read carefully head pattern formation of this chart. Price is declining from head after important candlestick pattern formation like Hanging Man, Shooting Star/Gravestone Doji and finally cross doji.
Right shoulder is formed slightly below the left shoulder which indicate the pressure on chart and at a golden ratio of Fibonacci retracement 61.8% from head. Price started falling at 61.8% level by making a Bearish Engulfing candlestick pattern. Head & shoulder pattern is completely formed and now waiting only for the neckline breakdown.
Previous day candle is Hammer at neckline so if price rally then we will see price may reach up to 1500 level. 1500 level is a psychological number along with 38.2% Fibonacci level. And 1500 is the best price for short sell because of limited upside potential 1568 with small stop loss of Rs 68 and a huge target. Risk Reward from this level would be 1:4
Bata India Short Sell
Sell Below 1450
Stop Loss 1568 (Highest high of Shooting Star and Bearish Engulfing)
First Target - 1300
Final Target - 1225
Please read carefully head pattern formation of this chart. Price is declining from head after important candlestick pattern formation like Hanging Man, Shooting Star/Gravestone Doji and finally cross doji.
Right shoulder is formed slightly below the left shoulder which indicate the pressure on chart and at a golden ratio of Fibonacci retracement 61.8% from head. Price started falling at 61.8% level by making a Bearish Engulfing candlestick pattern. Head & shoulder pattern is completely formed and now waiting only for the neckline breakdown.
Previous day candle is Hammer at neckline so if price rally then we will see price may reach up to 1500 level. 1500 level is a psychological number along with 38.2% Fibonacci level. And 1500 is the best price for short sell because of limited upside potential 1568 with small stop loss of Rs 68 and a huge target. Risk Reward from this level would be 1:4
Bata India Short Sell
Sell Below 1450
Stop Loss 1568 (Highest high of Shooting Star and Bearish Engulfing)
First Target - 1300
Final Target - 1225