GMR Infra looking weaker based on current pattern formation. H&S pattern formation is in progress. Neckline of this pattern will be the near time target.
RSI is also moving down with a series of divergence over the peak of H&S pattern.
If the neckline is broken strongly then the fall could be big with nearly 30% correction from the current level and this may take 2-3 months. However this can happen only if there is a major negative global event.
Trade active
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Target 1 is hit. If the H&S neckline is broken, target 2 can be expected.
Comment
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Weekly close below 20MA indicating more bearishness. However, it will be a sell only when the neckline is broken or the last week low is broken.
@SK_tron, no sign of bounce back. Last week range has to be broken for the next direction.
SK_tron
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do you think it will be broken>\?
kugan_vel
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@SK_tron, Have to wait and see the weekly close tomorrow. If yesterday's high is not broken today and tomorrow, the price may move back towards the neckline.
SK_tron
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@kugan_vel, but it has formed a long lower wick today in daily tf, any thoughts on that?
kugan_vel
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@SK_tron, the lower wick is just 38.2% fibonacci retracement which is normal. Anything above 61.8% retracement may be a trend reversal.
kugan_vel
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Moving towards Target 1. Crucial at the H&S neckline level. Watch for it.