Inverse Head and Shoulders is a Bullish Reversal Pattern that is used in Technical analysis to see for signals of a trend shift, from a downtrend to an Uptrend. This pattern is the Opposite of the Head and Shoulders pattern.
How to Trade the Pattern
- Breakout Entry: Once the price breaks above the neckline, traders look for a buying opportunity.
- Target Price: The expected upward move is approximately equal to the distance from the head to the neckline.
- Stop-Loss: Placed below the right shoulder to limit downside risk.
Indices Recovery from Bottom
Major Indices and Stocks have recovered sharply from their recent bottom with Nifty Smallcap recovering 1,939 points or 13.51 percent, Nifty Midcap 150 recovering 1,954 points or 10.49 percent, and Nifty Microcap 250 recovered 2,564 points or 13.64 percent.
NIFTY SMALLCAP 250
Inverse Head and shoulders breakout took place at 14,630. The index is currently down fallen over 17.52 percent from its 52-week high of 18,688.
NIFTY MICROCAP 250
Inverse Head and shoulders breakout took place at 20,780. The index is currently down over 18.60 percent from its 52-week high of 26,476.
Written By Abhishek Das
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