johntradingwick

ONGC - Inverse Head & Shoulders BO + volume expansion

Long
NSE:ONGC   OIL & NATURAL GAS
ONGC is breaking out of the Inverse Head & Shoulders pattern it was forming since February. The price has broken out from the neckline and there is an expansion in the volume . I have made an illustration on the left-hand side, to explain the pattern.

Targets: 128, 137, 140, 146.

You are always advised to use an appropriate Risk-Reward ratio as per your strategy.

P.S: This is NOT investment advice. This chart is meant for learning purposes only. Invest your capital at your own risk.

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Comments

how is target1 ad target 2 is calculated?
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johntradingwick SharathKumarMN
@SharathKumarMN, All the targets are based on the Fibonacci extension.
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Sir. Pls explain how are you drawing the neckline on what basis
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johntradingwick availraj2002fdb01b0ea1f5465c
@availraj2002fdb01b0ea1f5465c, In this case, the neckline is the level of resistance from which the price gets rejected. The neckline connects the two swing highs of the pattern and extends out to the right.
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@johntradingwick, thank you sir.. The line to be drawn based on daily or weekly or monthly chart
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johntradingwick availraj2002fdb01b0ea1f5465c
@availraj2002fdb01b0ea1f5465c It depends on the time frame you are using. I have used 4 hour chart for this analysis.
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@johntradingwick, Thank you so much sir.. The target you are mentioning about the depth of head will be reversed to the target level is super great.. One last question, if I am seeing in 4 hour chart the depth of head is the target after head and shoulder pattern and if it's crossing neck line, can the timeline be measured as like the target is expected to reach within 15 days or 7 days or 30 days?
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johntradingwick availraj2002fdb01b0ea1f5465c
@availraj2002fdb01b0ea1f5465c, In my opinion, the time taken to reach the target cannot be measured accurately since the rate of change of movement is not the same. Sometimes, the stock rises 1-2%, sometimes it rises 4-5% in a day. Hence, I don't measure the time objective.
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johntradingwick johntradingwick
@johntradingwick, For instance, you see this chart:



The price rallied 13-14% in a matter of few days. Nobody could have predicted that.
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@johntradingwick, awesome sir
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