POWER GRID - INVERSE HEAD & SHOULDERS BREAKOUTSymbol - POWERGRID
Power Grid Corporation of India Ltd. is a Maha-ratna Public Sector Enterprise and a key player in the Indian power transmission sector. It operates as a central transmission utility and is involved in the planning, implementation, and maintenance of transmission systems across the country.
Recently, the stock has exhibited a notable bullish breakout after forming an Inverse Head and Shoulders pattern. A classic reversal formation signaling a shift from a downtrend to an uptrend. Following the breakout, the stock may witness a retest of the neckline zone, which now acts as a support area - around 300 to 303 range. This zone offers a favorable risk-reward entry for positional investors anticipating further upside.
The projected target from this breakout lies near the 350-355 zone, offering a potential 17-20% upside from current levels, based on the height of the pattern added to the breakout point.
For prudent risk management, a stop loss below 280 is advisable, just below the right shoulder, to protect against unexpected downside.
Overall, the breakout of a well-formed Inverse Head and Shoulders on a higher time frame charts presents a bullish outlook for Power Grid, making it a strong candidate for medium-term investment consideration.
Disclaimer: The information provided here should not be construed as a buy or sell recommendation. It reflects my personal analysis and my trading position. Please consider this trading idea for educational purposes only. Thank you!
