IIFL Finance H&S pattern in formation

Jul 13, 2024

The IIFL Finance has formed Left Shoulder, head and Right Shoulder high.

A short opportunity is after formation of wave 2 in gray and if the script gets bearish near 500 then 22-30 points short run is possible in the form of wave 3 (in gray).

If neckline is broken then on retest in the form of wave 4 (in gray) then a short call can be taken near neckline for another short run of 20-25 points.


* It is not a trade advise but technical analysis shared based on my understanding of patterns and personal experiences, please take any trade with applying your analysis and at your own risk.

Jul 15, 2024

Note

from 496 (wave 2 high) to 481, 15 points run, if it again comes down then it can break neckline this time, it not then we can wait for triangle pattern to beak on upside.

Jul 17, 2024

Note

Seems like wave in Grey is not formed as drawn, means wave 3 in blue got over around 480 where wave 1 in grey is drawn (length of 28 points) and then wave 4 in blue is done at 498 and now we are in the last leg of wav in blue i.e. wave 5 which must not be longer than wave 3 length i.2. 28 points so with that 471-475 is the area where it must come once and then take support and revert back to above neckline.
if that happens the stock might start moving up again but if this happens or not a trade must be taken above the triangle resistance line somewhere above 495 area on basis of 15 minute candle close.

Jul 18, 2024

Note

As predicted Finally the stock broke below neckline and went till 470 , will extend the wave till 450 as mentioned by waves in blue color.

Jul 18, 2024

Note

Can extend the wave till 450-456 as mentioned by waves in blue color if 470 is broken on 15 minutes candle

Jul 19, 2024

Note

Nice move till 461.

Jul 22, 2024

Trade closed: target reached

finally went below 456 in the form of wave 5 in BLUE. Holding above this low is important for stock to get over correction phase.

Jul 23, 2024

Note

As per H&S pattern the actual target was 70+ points and it went till 406 when it gave H&S breakout at 483. So target is done the stock seems weak from here 440 is important.

Jul 31, 2024

Note

Downside move is still continued and it can make another down side move below 431 and then that can be the end of correction phase but it will be confirmed breaking 470. For now it is a stay away stock.