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Headandshouldersformation

07 Feb ’24 — Nifty Passes the Fire Test - Stance Upgraded to 🐂Nifty Analysis - Stance Bullish ⬆️ Recap from yesterday: ” Nifty is still undecided on the 63mts TF and for that same reason, we wish to start the day tomorrow with a neutral bias and then go long if we have a green candle above the 21913 zone. Only if BankNifty lends support we can take out the ATH and there is no better day than the expiry day for such feats.” 4mts chart The gap-up was much more than expected and we did not live well to that hype anyway. When we have a huge gap and the market starts to close, it accidentally builds momentum for the weaker hand and most of the time the scale tips in their favor. Luckily, the Bears could not capitalize on it today as Nifty fell 192 points ~ 0.87% from the highs, breaking the support of 21913. The recovery was not anything spectacular, Nifty just ended the day above the level of 21913 and for us, that is more than enough to change our stance from Neutral to Bullish. NiftyIT reminds us of the night watchman in cricket. When there are only a few more overs remaining in a Test match - you send a tail-ender instead of your best batsman. Today when BankNifty started awakening, NiftyIT started giving up. What was the reason NiftyIT ended the day with a loss of -1.25% on an otherwise good GREEN day? 63mts chart The Inverse Head and Shoulders look perfectly formed and since it is a high-accuracy pattern - we wish to put our weight behind it. The only thing standing in its way was the 21913 resistance, now the next target should be the all-time highs. Our stance for tomorrow is bullish and since these are all games of probabilities we reserve the right to be wrong as would like to keep the 21826 area as a good stop loss.
NSE:NIFTYLong
by viswaram
06 Feb ’24 — Head and Shoulders Inverse forming on BankNifty?BankNifty Analysis - Stance Neutral ➡️ Is BankNifty bearish? - absolutely not. Is it bullish? It's too early to say. One thing is sure - there is some weakness impacting the banks. Are the unsecured loans haunting them? None of the balance sheets from the quarterly results are bleeding - but something is still bothering them. Today was a fine day for the banks to support Nifty’s rally - still, the banks decided to stay on the bench. 4mts chart One thing is sure, the fall looks like arrested (for now). If Nifty takes out the ATH without the support of the banks again, then it is some indication that the Information Technology players may have taken over as the new torch-bearers. There are exactly 6 NiftyIT companies in Nifty50 as there are 6 banks in BankNifty. NiftyIT weight is 14.18% vs 33% of BankNifty - definitely, BN has lost some ground and IT has gobbled it. 63mts chart The perfect Inverse Head and Shoulders pattern has not formed yet - we still have 20% of the move remaining. We will closely monitor if BN chooses to follow this path as it is a bullish sign. The first clue came in when BN defended its support at 44542, the 2nd came when 45399 was defended. Tomorrow is the weekly expiry and we hope to see some actions - at present, the OTM strikes are not that juicy - if BN decides to move, we could expect some mispricings to pop in. Algo Trading Our BankNifty algo trades ended today with a gain of Rs8121.
NSE:BANKNIFTY
by viswaram
Bank Nifty - Head & Shoulder Target = Historical Resistance Disclaimer: Trading in financial markets involves substantial risks. Please consult your financial advisor before making any trading decisions. This message is not a solicitation to buy or sell. Perform your due diligence. WaveTalks - Market Whispers: Can you hear them? The last H&S pattern unfolded as expected. Analysts measure it by the vertical distance from the head's top to the neckline (shown in red vertical line) This measurement is then projected downwards from the neckline break ( shown as orange line) The resulting target aligned with historical resistance at 46250-46375, as updated on the last idea making of the right shoulder Day Low - 46212.95 ( 2:05 pm / 17th Jan 2024) Regarding the concept of historical resistance and support changing roles: The historical resistance at 46250-46375 might now act as support for the index. If this happens, it could provide some relief to bulls. However, whether this will occur can only be confirmed over time. This method is a one of the traditional way of setting targets in technical analysis. Have a great day!
NSE:BANKNIFTYLong
by WaveTalks
2
BankNifty -400 Points Up: Making the Right Shoulder in the IndexDisclaimer: Trading in financial markets involves substantial risks. Please consult your financial advisor before making any trading decisions. This message is not a solicitation to buy or sell. Perform your due diligence. WaveTalks - Market Whispers: Can you hear them? Today's Focus: Plan B's Mastery & The Emerging Pattern Good day, traders! As we discussed in our early 6 AM update - in the last idea of bank nifty ( Bullish Harmonic Pattern) the index followed Plan B to the letter, soaring over 400 points. A round of applause for everyone who joined in on this strategy! What's Next? We're now eyeing a fascinating development - the potential formation of a Head & Shoulder pattern . If our analysis holds true, we're on the cusp of forming the Right Shoulder. This becomes more evident if the index retraces back towards the 47,480's, all while maintaining below the 48,350-48,450 resistance zone. We might just be the architects of this Right Shoulder! Let's stay sharp and watch as the market unfolds this pattern. Stay tuned for more insights and remember, every move counts!
NSE:BANKNIFTYShort
by WaveTalks
17
BankNifty - Geometry in Motion: Unfolding of the Right ShoulderDisclaimer: Trading in financial markets involves substantial risks. Please consult your financial advisor before making any trading decisions. This message is not a solicitation to buy or sell. Perform your due diligence. WaveTalks - Market Whispers: Can you hear them? Market Commentary Following the update from 4th January 2024, the market has witnessed an extraordinary sequence, perfectly aligning with the anticipated Head & Shoulder pattern. The index precisely hit the resistance zone between 48,350 and 48,450, peaking at 48,381.95, before experiencing a significant drop to 47,010.80, a fall of approximately 1371 points. This movement confirmed the formation of the Right Shoulder in the pattern. Last Idea - 4th January 2024 Alternate Interior Angles As we delve into the geometrical aspects of market analysis, let's remember: Alternate Interior Angles on opposite sides of a transversal line are always equal. This mathematical principle is a reminder of the upcoming board exams in February-March 2024. Best of luck to all the students who will be appearing for their exams. Mathematics has always been fascinating, and its principles are even applicable in market analysis. In the context of Elliott Wave Analysis, the market's movements have been akin to a well-orchestrated dance. 10th January 2024 We observed a remarkable bounce from 47,010.80 to 47,662.10, marked as "O A" on the chart at a 72-degree angle. This bounce mirrored our predictions. 11th January 2024 The index witnessed a sharp decline during the end of the day session, reaching lows of 47,237 but staying above the critical zone of 47,150-47,200. Post this dip, the index rebounded, hitting all the projected upper targets on 12th January: 1. 47,550 2. 47,700 3. 47,850 12th January 2024 Magic of Neckline Extension. The extended rising neckline shown in orange colour dotted line acted as resistance, with the index halting just below it at 47,873, leading to a sharp decline to an intraday low of 47,600 (precisely 47,602), before surging upwards again towards end of the session. What's Next? Looking forward, if the index remains below the rising neckline of 47,873 and breaks below the minor support zone of 47,600-47,575, we might see a continuation of the downward trajectory. The following targets are in view: 1. Target 2: 47,400 2. Target 3: 47,235 3. Target 4: 46,900-47,000 4. Target 5: More speculative, but if the index falls below 46,800 and sustains it, a drop to the 46,450-46,550 zone is possible. 5. The 46,800-46,900 range is a critical phase to observe and possibly stay on the sidelines. As we embrace the festive spirit of Makar Sankranti and bid farewell to winter, I extend my warmest wishes for the festival. Keep an ear out for the whispers of the market and stay tuned for further updates. WaveTalks Market Whispers: Can you hear them?
NSE:BANKNIFTYShort
by WaveTalks
13
WESTLIFE: Head & Shoulder ContinuationInverse Head and Shoulders Continuation: This pattern forms in an extensive upside rally. It consists of a left shoulder, a head, and a right shoulder. 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 on cmp add on dips , keeping SL of 710 look for the measured target of 975 and beyond that 1200 region.
NSE:WESTLIFELong
by TradingSutra
Bullish Inverted H&S Pattern BO in Bharat WiresIntroduction: Bharat Wire Ropes Ltd. engages in the manufacture and sale of steel wire ropes, wire strands, and wire rope slings. Its products include different types of ropes including general purpose ropes, fishing, crane, structural, elevator, mining, oil and gas, and shipping ropes. It also offers mechanically spliced and hand spliced slings, earth wires, stay wires, and spiral strands. The company was founded in 1986 and is headquartered in Mumbai, India. Analysis A Bullish Inverted Head and Shoulder pattern is visible on the Daily chart of NSE:BHARATWIRE NSE:IWEL with huge volume. MACD gave Positive crossover on Daily, Weekly and Monthlychart. So, expecting the momentum to continue. One can create a fresh position in the scrip near Rs. 290-300 levels with the stoploss of Rs. 280.05 on Daily closing basis for the following targets 305.15, 312.25, 321.05, 329.15, 335.60, 342.05, 348.95 and 354.90. Risk Disclaimer: The trading ideas and analyses presented here are for educational purposes only and do not constitute financial advice. Trading and investing in financial markets involve risk. You should carefully consider your own financial situation, risk tolerance, and investment objectives before making any investment decisions. The information provided in this analysis is based on my personal interpretation of market conditions and the available data at the time of writing. It is subject to change without notice, and I cannot guarantee the accuracy, completeness, or timeliness of the information provided. Trading and investing carry the risk of substantial losses, and past performance is not indicative of future results. Always be aware that markets can be unpredictable, and prices may move against your trade or investment. It is advisable to seek advice from a qualified financial professional and to conduct your own research before making any investment decisions. You should only invest funds that you can afford to lose. I am not responsible for any trades or investments made based on the information presented in this analysis. By reading and using this information, you acknowledge and accept that you are solely responsible for any losses you may incur.
NSE:BHARATWIRELong
by raigvivek
WESTLIFE - 2 Possible Entries with Inverse Head and Shoulder🙌 Welcome to another educational analysis, where we'll discuss the recent breakout of WESTLIFE from an Inverse Head and Shoulder pattern. Please note that this analysis is for educational purposes only, and I am not a SEBI registered analyst. 📊 Key Details 🚀 WESTLIFE broke out of the Inverse Head and Shoulder pattern on June 1st with significant volume, reaching an all-time high level. Let's discuss the two possible entries: First entry: Above 852, which is the breakout candle's high. Second entry: At the retest of breakout at neckline . For both entries, ensure the Stop Loss (SL) is placed below the neckline around 800 to manage risk effectively. The first entry is more suitable for aggressive traders, while the second entry provides a safer option for both aggressive and conservative traders. 💡 Technical Terms Explained 💡 Before we proceed, let's clarify some technical terms used in this analysis: 💡 Inverse Head and Shoulder pattern: A reversal chart pattern characterized by three troughs, where the middle trough (the head) is lower than the other two (the shoulders). The neckline connects the highest points of the two shoulders. 💡 Breakout: When the price of a security moves above a certain level of resistance, indicating a potential upward trend continuation or reversal. 💡 Neckline: The resistance line connecting the highest points of the two shoulders in an Inverse Head and Shoulder pattern. It acts as a crucial level to monitor for potential breakouts or breakdowns. Remember: Always conduct your own analysis and risk assessment before making any trading decisions. 💪 "Success is not the key to happiness. Happiness is the key to success. If you love what you are doing, you will be successful." 💪 💬 Feel free to share your observations and insights in the comments section. Your comments and feedback are greatly appreciated. Don't forget to like this analysis if you found it helpful! 🤝 Thank you for your continuous support, likes, follows, and comments. Your engagement keeps me motivated to consistently provide valuable content. ✅ For more articles and trade setups, follow me on TradingView: in.tradingview.com Remember to conduct thorough research and exercise caution while trading. Happy trading! 📊📈💪
NSE:WESTLIFELong
by AfnanTAjuddin
Tata Communictions Falg BreakoutA Bullish flag and Pole breakout has been confirmed with very huge volume on the daily chart of Tata Communications. Daily & Weekly RSI both are in bullish zone. One can crete fresh position in Tata Communcations at 1610 or below with a stop loss of Rs. 1510 for a target of Rs, 1910. The risk to reward ration is 1:3 Exit the position if the stop loss triggered on DCB. DO YOU WANT ALL MY RESEARCH FOR FREE THEN DON'T FORGET TO FOLLOW ME. I AM EAGERLY WAITING FOR YOU COMMENTS ON THE STUDY... Disclaimer: Content shared is for information and education purposes only and should not be treated as investment or trading advice. Please do your own analysis or take independent professional financial advice before making any investments based on your own personal circumstances. Investment in securities are subject to market risks, please carry out your due diligence before investing. And last but not the least, past performance is not indicative of future returns.
NSE:TATACOMMLong
by raigvivek
2
BankNifty at an Interesting JunctureBankNifty is currently positioned at a pivotal point, presenting traders with a potential opportunity. From a statistical perspective, the presence of a head and shoulder pattern at an all-time high often indicates a forthcoming correction. If this head and shoulder pattern is invoked, we could witness a correction ranging between 1500 to 1900 points in BankNifty. The chart elucidates the situation clearly. There is a robust support level at 44,000, with resistance levels situated at 45,000 and 45,500 . It's essential to remember that trading is fundamentally about gauging probabilities. If a downward movement ensues, it could drive BankNifty to levels around 42,000 . Conversely, if the head and shoulder pattern does not materialize, the index might challenge the right shoulder high, which corresponds to the first resistance level. Should it breach the second resistance at 45,500, it becomes highly probable that the all-time high will be surpassed. Trade wisely, and always consider the inherent risks and probabilities.
NSE:BANKNIFTY
by msk_analysis