Head and Shoulder Pattern in the making

Dec 17, 2021

Stock price movement has formed head and shoulder pattern on monthly price chart. Best seen when you change chart type from candles to line. An investor has to observe caution as this pattern is the reversal pattern. We have to watch out for further price movement. If the price falls below neckline drawn on the chart then fall may continue up to height of head from neckline. However, seldom actual drop confirms according to textbook fall. But, further buying shall only be initiated if price movement does not lead to head and shoulder. RSI on monthly chart indicates enough upside possible in the stock