AfnanTAjuddin

Series of Bullish Patterns in CRAFTSMAN

Long
NSE:CRAFTSMAN   CRAFTSMAN AUTOMATION LTD
CRAFTSMAN stock chart has formed a series of bullish patterns. Let's break it down:

πŸ“ˆInverse Head and Shoulders PatternπŸ“ˆ
➀ The inverse head and shoulders pattern formed from January 2023 to May 2023 at all-time high levels.
➀ Inverse Head and Shoulders is generally considered a bullish signal.

πŸ“ˆBreakout and RetestπŸ“ˆ
➀ On May 31st, 2023, a breakout occurred for the inverse head and shoulders pattern with good volume, indicating a potential upward move.
➀ The next day, on June 1st, a retest of the breakout level occurred at the neckline of the inverse head and shoulders pattern, further strengthening the bullish case.

πŸ“ˆAscending Triangle PatternπŸ“ˆ

➀ Following the retest, an ascending triangle pattern formed on the lower 15-minute time frame.
➀ An ascending triangle is a bullish continuation pattern, indicating potential upward momentum.

πŸ“ˆBased on these patterns, the overall technical outlook appears positive. The inverse head and shoulders pattern followed by a breakout, retest, and subsequent formation of an ascending triangle suggests potential upward momentum in the stock's price. Consider planning a buy entry upon the breakout of the ascending pattern if you missed the entry at the retest of the neckline.

Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. I am not a SEBI registered analyst. Always conduct your own research and consult a qualified professional before making any investment decisions.

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Technical Terms Explained:

Inverse Head and Shoulders Pattern: A bullish reversal pattern characterized by three successive troughs, with the middle trough (the head) being lower than the other two (the shoulders). It indicates a potential trend reversal from bearish to bullish.

Breakout: When the price of an asset moves above a significant level of resistance, signaling a potential upward move.

Retest: After a breakout, when the price retraces back to the breakout level, acting as a test to validate the breakout's strength.

Ascending Triangle Pattern: A bullish continuation pattern characterized by a series of higher lows and a horizontal resistance line. It suggests potential upward momentum.