Bajaj Auto – Bullish head and shoulder breakout📈 Pattern Analysis: Bajaj Auto has successfully completed a Bullish Head and Shoulders pattern on the chart, followed by a clean breakout and subsequent retest, confirming the validity of the formation. The price action now awaits a pivot breakout, which would trigger the next leg of upside momentum.
📊 Trading Strategy:
Two distinct trading approaches can be considered based on trader type:
1. Retail Concept Strategy:
Enter long above the pivot high once price breaks decisively.
Place stop-loss below the breakout candle, ensuring a safer entry with confirmation.
Note: The risk–reward ratio is less favorable if the SL is kept below the right shoulder in classical style.
2. Smart Money Strategy:
Enter on retrace to the order block area positioned just above the right shoulder.
This offers a superior risk–reward entry aligned with institutional-style trading concepts.
🔎 Indicators & Trend:
50 EMA is sloping upward on the hourly timeframe, confirming short-term uptrend strength.
RSI > 65, indicating sustained bullish momentum with potential for continuation.
🎯 Target Projection:
Targets will be determined using the measurement rule, projecting the height of the head added to the neckline breakout zone.
⚠️ Disclaimer:
This analysis is prepared only for educational and training purposes. It does not constitute investment advice or a trading recommendation.
✍️ Prepared by: SEBI Certified Research Analyst (Not Registered)
Long
