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.
Inverse head and shoulder should form in downtrend as it is reversal pattern.
BUT ONGC is not in downtrend.
johntradingwick
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@pav_technicals, Yes, my bad. I made a mistake while charting. I was simultaneously doing another chart with IHS and unfortunately mixed up. I realized that a few days after posting the chart but TV doesn't allow deletion of ideas after posting. The correct pattern here was the "Cup and Handle" pattern.
Luckily, no harms done since regardless of the pattern, the direction was a clear-up trend.
pav_technicals
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@johntradingwick, ITs ok... it happens time.. Keep it up the good work.
SharathKumarMN
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how is target1 ad target 2 is calculated?
johntradingwick
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@SharathKumarMN, All the targets are based on the Fibonacci extension.
availraj2002fdb01b0ea1f5465c
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Sir. Pls explain how are you drawing the neckline on what basis
johntradingwick
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@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.
availraj2002fdb01b0ea1f5465c
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@imfamousrajat, thank you sir.. The line to be drawn based on daily or weekly or monthly chart
johntradingwick
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@availraj2002fdb01b0ea1f5465c It depends on the time frame you are using. I have used 4 hour chart for this analysis.
availraj2002fdb01b0ea1f5465c
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@imfamousrajat, 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?
BUT ONGC is not in downtrend.