Furqaan

INVERSE HEAD & SHOULDER BREAKOUT IN MARUTI

Long
NSE:MARUTI   MARUTI SUZUKI IND
MARUTI A GOOD BUY?


Maruti broke out of the Head & Shoulders pattern this week (3rd DEC 2020) and landed near the 1st major resistance zone around 7750 level.
If we see a slight correction, i.e a slight pullback near the neckline, or if it comes near the 11 day or 22 day EMA in the 1 day timeframe chart, we can look to buy MARUTI. Refer to the image above for the breakout of Head & Shoulder pattern in Weekly timeframe .
This Head & Shoulder formation started around 1st Jan 2018, we may have to wait for some time before reaching our targets, timeframe of 2-4 months can be expected which makes this is a Good short-term investment strategy.Now, we know that Head & Shoulder formation has the Target = Distance between the Head and Neckline, but to be on the safe side I have taken the price range from smaller peak formed on the month of May 2020. Refer the image below to see the smaller peak & the targets.


Remember to only enter once there is a pullback and the prices have corrected. You can also use trailing SL to have multiple entry and exit points to maximise the trade opportunities in this security. The 1st Major Target is around 9500 price level & the 2nd Major Target is around 10000 price level.

Happy Trading & Investing, let me know if you liked this analysis and please give your feedback to help me publish ideas better.

Comment: The Entry was on 23rd December 2020 after the neckline was tested at 7400 price levels as mentioned in the post before. Now waiting for it to reach the First Major Target around 9500 Price levels. The timeline as mentioned before is 2-4 months.