Inverse Head and Shoulders is a Bullish Reversal Pattern that is used in Technical analysis to look for signals of 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.
HAL is the stock that has formed Inverse Head & Shoulders and given a breakout of the falling trendline on its 1-Day Chart
The Breakout Level for the Inverse head and Shoulders is Rs. 4,375, which is shown with a blue line, and the stock is currently trading at Rs. 4,492 above the breakout level. The next resistance zone for the stock is around Rs. 4,530 to 4,615 levels, shown in the red channel. And the Nearest support zone for the stock is Rs. 4,020 to 3,980 levels, shown in the green channel. The falling trendline is shown with a yellow line.
About the Company
Hindustan Aeronautics Limited (HAL), established in 1940 and headquartered in Bengaluru, Karnataka, is one of the oldest and largest aerospace companies in Asia. HAL’s core business includes the design, development, manufacture, and maintenance of aircraft, helicopters, engines, avionics, and aerospace structures.
The company plays a crucial role in India’s defence sector, producing key military platforms like the Tejas Light Combat Aircraft (LCA), Dhruv helicopters, and Sukhoi-30 MKI fighter jets under license production.
Written By Abhishek Das
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