Head and shoulder pattern break out in M&M.

Mahindra & Mahindra is forming a new ATH and has closed above the neckline of the inverted head and shoulder pattern.

The shock on the weekly time frame has given a nice closing near the ATH and on the daily time frame test the 20 ema after taking a retest from the resistance zone then giving a breakout.

Sector and stock both has closed near the ATH. There is a much chance of carrying on with the break out and hitting 1.618 and 2.618 Fibonacci levels.

Auto sector has also move more than 1.5% which also helps in carrying a bullish trade in this stock.

In the second half of the trading session the stock has consolidated on the higher levels and closed just around it.

3 point confirmation.
1. Break out of Inverted H&S pattern.
2. Retested before giving a breakout.
3. Auto sector also forming ATH.

Target:- 1628, 1700
Stop Loss :- Close below 1575 (hourly candle).

Stock can be bought for the targets. Even swing and positional trades can be carried in the september series.

Wait for the price action near the levels before entering the market.


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