The script we are going to analysis is Reliance Industries Ltd..
In Daily TF the script has formed a Inverted H&S Pattern. The trend was in uptrend as per EMA200 as which the pattern was more valid one. RIL was in the consolidation phase for more than a 9 months. The script was traded in a range bound where the now market structure was forming at Higher Highs and Higher Lows.
The script has strong resistance at 2272 - 2225 and Support at 2063 - 2024 and 1896 - 1838 Also the H&S Neckline will act as resistance for the script. The script has more than 100 Bars for forming Inverted H&S Pattern.
Moreover, MACD was in the flat range as the volatility was shrinking. ATR also evidence the Volatility was shrinking. The script has Dynamic S&R at 2105-2125. Stochastic RSI was in the oversold range. CPR was in the bearish bias comparted to last month CPR.
Based on the above, Our advise we can go Bullish once the Pullback came at range of 2130-2100 as we have higher risk to reward.
Entry based on Pullback or brake out SL - Below Right shoulder - 1 ATR Target - Height of the Head and Trail your SL.
Chart Pattern:
MACD:
Dynamic Support:
ATR:
CPR:
Stochastic RSI:
Trend as EMA200:
Commentaire
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Today Neckline was breaked. Wait for a retest or pullback.
Commentaire
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Pullback is on. Wait for the bullish reversal candle to enter the trade
in IHS, how can left shoulder is larger than the head??
Caapinves
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@nirmalmishra - Most of the time Head and Shoulders are not perfectly shaped. This formation is slightly tilted upward or downward.
One shoulder may appear to droop.
On many chart patterns, any one of the two shoulders may appear broader than the other which is caused by the time involved in the formation of the valleys.
The neckline may not be perfectly horizontal; it may be ascending or descending.
If the neckline is ascending then to qualify as a Head and Shoulders formation the lowest point of the right shoulder must be noticeably lower than the peak of the left shoulder.