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Headandshouldersbottom

SPANDANA: INVERSE H&S BREAKOUT nverse Head and Shoulders This pattern forms after an extensive downside rally. It consists of a left shoulder, a head, and a right shoulder. The left shoulder is formed after a big bear rally in which the volumes are quite large. At the end of the left shoulder, a minor correction takes place on the upside which happens on the low volumes comparatively the starting of the left shoulder. After this again a down move can be seen on large volumes forming a head having its bottom is below the left shoulder following an upmove correction on lower volumes & completing the head. The completion of the head must be above the top of the left shoulder. If the prices rise above the top of the left shoulder then too this pattern remains intact. In the end, the right shoulder is formed usually on smaller volumes comparatively the previous two rallies. Now if you connect the tops of the left shoulder, head & the right shoulder there will be a formation of the ‘Neckline‘. This line will act as a decision line. If the prices break this neckline & give closing above the line, this will be the confirmation of the breakout of the Inverse head and shoulders pattern. However, it has been noticed that after breaking of the neckline the prices again attracted towards this neckline. We say this phenomenon as a retest of the neckline which will add some more confidence while trading this pattern. After retesting if the prices again start rising, this will be the final confirmation of the up move as shown above. The bookish target of this pattern is taken as the vertical price range from the bottom of the head to the neckline & the bookish Stop loss should be the bottom of the right shoulder. However this stop loss can be big, so it is advised to keep a stop loss of 4-5% of the price range below the neckline. TRADING STRATEGY: Buy near 870-880 zone with SL of 770 and look for the target of 1500 Zone in the coming months and years.
NSE:SPANDANALong
by TradingSutra
1
Double Bottom & Head and Shoulders Bottom PatternRushil Decor Ltd. Daily Chart showing Double Bottom & Head and Shoulders Bottom Pattern Formation Double Bottom Pattern The price seems to have reached a bottom after failing to break through a support level and ultimately rising higher in a sign of reversal to a new uptrend. The Double Bottom pattern forms during a downtrend as the price reaches two distinct lows at roughly the same price level. Head and Shoulders Bottom Pattern The price seems to have reached the end of a period of "accumulation" at the bottom of a major downtrend; the break up through resistance signals a reversal to a new uptrend. The Head and Shoulders Bottom is created by three successive declines in the price following a significant downtrend. Note for everyone who came across this reference: This chart analysis is only for reference purpose. This is not buying or selling recommendations. I am not SEBI registered. Please consult your financial advisor before taking any trade.
R
by hardeepssethi
Bandhan Bank - Head and Shoulders Bottom"Head and Shoulders Bottom" or "Inverse Head and Shoulders" pattern formation on daily chart of BANDHANBNK. This pattern is often used by traders to identify potential trend reversals in financial markets, particularly in stocks. The pattern indicates a shift from a downtrend to an uptrend. Here's a breakdown of the pattern: Downtrend and Accumulation: The pattern typically forms after a prolonged downtrend. During this period, the price reaches a bottom and starts to consolidate, forming what you referred to as a "period of accumulation." Three Declines: The pattern is characterized by three price declines: a lower low (the head) surrounded by two higher lows (the shoulders) that are roughly at the same level. The head and shoulders create a distinct visual pattern that resembles a head with two shoulders on each side. Volume: In the context of this pattern, volume plays a significant role. It's usually highest during the formation of the left shoulder and the head. As the right shoulder forms, volume tends to decrease, indicating diminishing selling pressure. Neckline: The neckline is drawn by connecting the highs of the two shoulders. It acts as a resistance level that needs to be overcome for the pattern to be confirmed. Reversal Confirmation: The pattern is confirmed when the price breaks above the neckline. This breakout is typically accompanied by a surge in volume, indicating increased buying interest. This breakout suggests that the selling pressure that had dominated the downtrend is waning, and buyers are gaining control. Price Projection: Traders often project a target for the new uptrend based on the pattern's height. This can be done by measuring the vertical distance from the lowest low (the head) to the neckline and then adding that distance to the neckline breakout point. It's important to note that while the Head and Shoulders Bottom pattern can be a powerful tool for identifying potential trend reversals, it's not foolproof. Not all instances of this pattern lead to successful reversals, and false breakouts can occur. As with any technical analysis pattern, it's advisable to use it in conjunction with other indicators and analysis methods to increase the accuracy of your trading decisions. Note for everyone who came across this reference: This chart analysis is only for reference purpose. This is not buying or selling recommendations. I am not SEBI registered. Please consult your financial advisor before taking any trade.
NSE:BANDHANBNK
by hardeepssethi
IRCTC Analysis (Head and Shoulders)! NSE:IRCTC ANALYSIS! IRCTC Analysis on a daily Timeframe! Descending Triangle Pattern Formation, Breakout and Retesting on a Weekly Timeframe! Inverted Head and Shoulder Pattern Formation, Breakout and Retesting on a Daily Timeframe! Bullish RSI Divergence in IRCTC! Trend Reversal in IRCTC! IRCTC has made Descending Triangle Pattern on weekly Timeframe , and it has given a breakout to its resistance trendline and retested its support level. If we reduce timeframe to Daily timeframe, then we can see the clear INVERTED HEAD AND SHOULDERS PATTERN at the bottom. We can see previous trend is Downtrend. If we combine RSI analysis with it, then we can see a Bullish RSI Divergence. After the bullish divergence the trend has been changed from Downtrend to an Uptrend. After that RSI and Price both are trending Upwards. This is a clear indication of the bullishness. I have extended neckline and support trendline both may act as a Support Trendlines. Rest of all Analysis is on the chart itself and I have marked all the important levels with price do study thoroughly. Thank You! Important Note= Please have a look on my previous IRCTC Analysis which is based on Weekly Analysis. Entry = Current levels are considered to be a good buy. Stop Loss = Below 615.50 Targets = 1) 661.50 2) 66490 3) 711.55 Disclaimer = All my analysis is for Educational Purpose only. Before entering into any trade - 1) Educate Yourself 2) Do your own research and analysis 3) Define your Risk to Reward ratio 4) Don't trade with full capital
NSE:IRCTCLong
by Avinash9087
2
JKPAPER - Keep in radar!JKPAPER Technical analysis pattern known as the "Head and Shoulders Bottom," also referred to as an "Inverse Head and Shoulders" pattern has been formed on daily chart of JKPAPER. This pattern is often considered a bullish reversal pattern, indicating a potential change in trend from a downtrend to an uptrend. Here's a breakdown of the pattern: Downtrend Phase: The pattern forms after a significant downtrend in the price of an asset. Formation of Lows: The pattern consists of three lows. The first and third lows (the "shoulders") are higher than the middle low (the "head"). This forms a distinctive shape resembling a head and shoulders, but in an inverted position. Volume Analysis: During the formation of the pattern, you typically observe higher trading volume during the first two declines (shoulders), indicating strong selling interest. As the pattern progresses into the right shoulder, trading volume usually diminishes, showing decreased selling pressure. Neckline: Drawn between the two highs (shoulders), the neckline acts as a level of resistance that needs to be broken for the pattern to be confirmed. Reversal Signal: The bullish reversal signal occurs when the price breaks above the neckline. This breakout signals the potential end of the downtrend and the beginning of a new uptrend. The breakout is often accompanied by an increase in trading volume, indicating a surge in buying interest. Confirmation: For the pattern to be considered confirmed, it's important that the price closes above the neckline, preferably on higher volume. This confirms the change in sentiment from bearish to bullish. Price Target: To estimate the potential price target after the breakout, you can measure the distance from the head (lowest low) to the neckline and project that distance upward from the breakout point. Remember that while technical analysis patterns like the Head and Shoulders Bottom can provide insights into potential price movements, they are not foolproof indicators. Markets are influenced by a wide range of factors, and patterns may not always play out as expected. It's important to consider other forms of analysis and risk management strategies when making trading decisions. Note for everyone who came across this reference: This chart analysis is only for reference purpose. This is not buying or selling recommendations. I am not SEBI registered. Please consult your financial advisor before taking any trade.
NSE:JKPAPER
by hardeepssethi
Keep Nazara in radarNazara Technologies Ltd. It appears that the price has completed a phase of "accumulation" at the bottom of a major downtrend, and the recent breakthrough of the resistance level suggests a potential reversal to a new uptrend. To identify this pattern, traders often look for a Head and Shoulders Bottom formation, which involves three consecutive price declines following a significant downtrend. The lowest point, or the "head," is situated in the middle, flanked by two "shoulders" at around the same level but higher than the head. As the price makes the first two declines, the trading volume is usually the highest and then decreases during the formation of the right shoulder. Finally, when the price surpasses the neckline, which is drawn between the two highs, the volume typically surges, confirming the reversal of the trend. Note for everyone who came across this study: This chart is only for educational purpose. This is not buying or selling recommendations. I am not SEBI registered. Please consult your financial advisor before taking any trade.
NSE:NAZARA
by hardeepssethi
Bullish breakout in NSE PSUBANK Index on weekly chartNSE's PSUBANK index (ticker: CNXPSUBANK) was trading in a long head and shoulders consolidation for two years from mid 2019 to mid 2021. The breakout from inverted H&S happened in Oct'21 after which the index began to consolidate in a bull flag type of formation till Aug'22. The index broke out from this consolidation in Aug, gave a retracement back to the consolidation zone and has now finally broken out of this zone. We are bullish on the NSE PSUBANK index in the coming months with immediate target of 3400 followed by 4000-4200 as a major resistance zone as shown in the chart. Stop loss below Sep'22 low of 2856.
NSE:CNXPSUBANKLong
by vipulmehta817