Inverse Head & Shoulders in TATAMOTORS

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.


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