INVERSE HEAD & SHOULDERS PATTERN... NIFTY PHARMA!
Inverse head and shoulders pattern is considered a bullish reversal pattern.
A breakout of the neckline after completion of the right shoulder triggers the rally in the underlying script.
In individual scripts, the breakout can be confirmed with good volumes traded.
The share price can retrace and take support at the trendline (the resistance line now acts as support). This is the next confirmation of the bullish trend.
The distance between the head and the neckline if projected above the neckline can be considered as the target ahead.
In nifty pharma, the index has been consolidating for almost 4 months now. A clear breakout of this neckline can be seen. The index also shows a retest of the trendline and looks like the rally has started. The target should be 15550 (calculated from the height of the head to the neckline).
Happy trading!
A breakout of the neckline after completion of the right shoulder triggers the rally in the underlying script.
In individual scripts, the breakout can be confirmed with good volumes traded.
The share price can retrace and take support at the trendline (the resistance line now acts as support). This is the next confirmation of the bullish trend.
The distance between the head and the neckline if projected above the neckline can be considered as the target ahead.
In nifty pharma, the index has been consolidating for almost 4 months now. A clear breakout of this neckline can be seen. The index also shows a retest of the trendline and looks like the rally has started. The target should be 15550 (calculated from the height of the head to the neckline).
Happy trading!
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