The Head and Shoulders pattern is an accurate reversal pattern that can be used to enter a bearish position after a bullish trend. It consists of 3 tops with a higher high in the middle, called the head. The line connecting the 2 valleys is the neckline. The height of the last top can be higher than the first, but not higher than the head. In other words, the price tried to make a higher high, but failed. The closer the 2 outer tops are to the same price, the more accurate the pattern.
If the price breaks the neckline and closes below it, the pattern has completed. Conservative traders may look for additional confirmation. The target can be estimated by measuring the height of the pattern (from the neckline to the head) and projecting this downwards. Common stop levels are above the neckline or above the right shoulder. The Inverse Head and Shoulders is the bullish version of this pattern that can form after a downtrend. TradingView has a smart drawing tool that allows users to visually identify this pattern on a chart.
As on 18/09/18, HLL has made INVERSE HEAD & SHOULDER CHART PATTERN in 4 hourly and 3 hourly time frames.
Resistance Level: 1669.70
Support Level : 1657.64
Buy HLL for targets 1682.50/1702.20/1731.40 with stoploss 1644.75
JAIN Irrigation has been in a down trend all 2018. Made an inverse head and shoulders pattern, if you will. Currently testing the neckline again, awaiting a breakout/Reevrsal
Titan may be making a Bearish Head and shoulder pattern on yearly charts.
940 being the shoulders and 990 levels is the Head.
We should wait for confirmation which a closing below 800 levels for 2 consecutive days. After confirmation targets mat be 760 740 levels and may be more.
Indicators are showing reversal. Daily Bandbollinger narrow range,PASR turns positive,CCI crossover,weeklly PSAR turns positive and others. That will lead to achieve the target on coming days. Pattern wise, Parallel line breakout, Inv.Head and shoulder and Double bottom are going on. Refer chart for Target and stoploss details.
Vijayaraghavan.K,
Kovilpatti.
