akashgoyal063063

Inverse Head & Shoulders in TATAMOTORS

Long
NSE:TATAMOTORS   TATA MOTORS LTD
TATAMOTORS 1-day chart is forming a Head & Shoulders pattern.

One can BUY in the range of 340-342.
The target is around 357-362 (adding 20-25 difference between shoulders and head to the neckline level of 337 giving 357-362).

Ideally, there can be three possible stop-losses:
(Assuming Buy level of 340 & Target level of 360)
1. At the lowest level of right shoulder - 306 giving a 1.7:1 risk-reward ratio.
2. At the lowest level of left shoulder - 301 giving a 2:1 risk-reward ratio.
3. At the lowest level of head - 280 giving a 3:1 risk-reward ratio.

But, You can keep a stop-loss at the monthly pivot level also to improve your risk-reward ratio.
This is a very risky trade. Adopt according to your risk appetite. Keep the stop losses trailing if the trade goes in our direction.

BUY - 340-342
TARGET - 357-362
SL - 306/301/280

Disclaimer - This is just for educational purposes. No recommendation is given. Trade at your own risk & will.

Any sort of feedback is wholeheartedly welcomed.

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.