Oil and Natural Gas Corporation (ONGC)- LongOil and Natural Gas Corporation (ONGC) on a 15-minute timeframe from NSE, showing an Inverted Head and Shoulders (IHS) pattern. Let’s break it down:
1. Identification of Inverted Head and Shoulders Pattern
Left Shoulder: The first smaller dip before the major drop.
Head: The lowest point in the pattern, indicating the strongest bearish move.
Right Shoulder: A higher low after the head, showing a potential reversal.
Neckline: The resistance level that connects the highs between the shoulders and head. The breakout above this neckline confirms the pattern.
2. Volume Analysis
Volume increases significantly during the breakout, confirming the validity of the pattern.
The rise in volume indicates strong buying interest, which is a bullish sign.
3. Moving Averages (EMA)
The price has crossed above the 200 EMA (purple line), which is a strong bullish signal.
The short-term moving averages (e.g., 9 EMA, 21 EMA) are also trending upwards, further supporting the bullish trend.
4. Entry and Exit Points
Entry: The best entry point is above the neckline breakout level, around 230-231, once confirmed with volume.
Stop-loss: Place a stop-loss just below the right shoulder, around 224-225.
Target (Exit Point): The projected target is calculated by adding the depth of the head to the neckline. This gives a target of around 243-244, which aligns with the previous resistance level (blue line).
Conclusion
The Inverted Head and Shoulders pattern is confirmed with a breakout and volume spike.
Bullish bias as price has crossed above the 200 EMA.
The price is likely to move toward 243-244 INR in the short term.
This analysis is for **educational and informational purposes only** and should not be considered as financial or investment advice. Trading and investing in financial markets involve risk, and past performance is not indicative of future results. Always conduct your own research, consult a qualified financial advisor, and use proper risk management strategies before making any trading decisions. The author is not responsible for any financial losses incurred based on this analysis.
