1⃣ Pattern Structure & Breakout Development 📈
📐 Pattern Identification: Inverted Head and Shoulder Pattern – a powerful bottom reversal pattern, signaling the end of a prolonged downtrend and readiness for upside expansion.
⏳ Time Taken in Formation: The pattern matured over 7 months (from December 2024 to July 2025). This is an ideal duration on the daily chart, allowing institutional buildup and accumulation phases to complete.
📊 Price Trend Before the Pattern: The stock had been in a downtrend, falling from ₹410 to a bottom near ₹240. This decline created the structural base for the left shoulder, head, and right shoulder.
📦 Price Movement Inside the Pattern:
Left Shoulder: Dec 2024–Jan 2025; shallow decline and mild recovery.
Head: Mar 2025; price dropped to the lowest point near ₹240 with sharp volatility.
Right Shoulder: May–July 2025; a higher low formation, tight consolidation, and buildup under neckline resistance – ideal structural behavior before breakout.
🚀 Breakout Zone & Behavior: The neckline near ₹312 has now been decisively broken with a strong bullish candle closing at ₹330.50, confirming a clean breakout with momentum.
2⃣ Volume Behavior & Breakout Validity 🔍
📉 Volume During the Pattern: During the body of the pattern (especially March to May), volume remained below average, indicating supply exhaustion and absorption from stronger hands.
📈 Volume Before the Breakout: Noticeable volume rise in the right shoulder phase, suggesting institutional entry ahead of breakout — a positive preparatory signal.
💥 Volume on Breakout Candle: Today’s breakout came with 2.2M shares traded, one of the highest volume bars in the last 3 months — a key confirmation of genuine breakout strength.
🔮 Volume After Breakout – What to Expect: Sustained high volume in the next 2–3 days will help validate follow-through. If volume contracts but price holds above ₹312–₹315, a healthy retest may offer secondary entry.
3⃣ Candlestick Dynamics & Trap Awareness 🕯️
🔥 Candles Formed Before Breakout: Price showed gradual higher lows, small-bodied candles, and a tight range under resistance — classic signs of energy buildup before breakout.
💎 Breakout Candle Characteristics: Today's candle is a bullish marubozu — full body, minimal wick, closing near day’s high. This reflects strong buyer conviction and zero rejection at breakout point.
⚠️ Impact of the Breakout Candle: A textbook breakout — no signs of trap or exhaustion. However, traders must monitor whether price sustains above ₹312–₹315 in the coming sessions.
4⃣ Trade Setup – Entry, Exit & Risk Strategy 🛍️
🛡️ Safe Entry: Enter on retest near ₹315–₹318 with bullish candle confirmation — allows entry with structure-based stop-loss.
⚡ Aggressive Entry: Enter at current levels (₹330.50) on strength, with a tight stop below breakout zone.
🎯 Target Zones (Measured Move):
Pattern Height: ₹312 (neckline) – ₹240 (head) = ₹72
Target 1: ₹312 + ₹72 = ₹384
Target 2: ₹410 (previous supply zone and gap resistance)
🚩 Stop-loss Placement:
Safe: SL below breakout zone ~₹308
Aggressive: SL near swing low ~₹315
⚖️ Risk**:Reward**** Planning:**
Safe: Entry ₹318 / SL ₹308 / Target ₹384 → R**:R**** ≈ 1:6.6**
Aggressive: Entry ₹330.50 / SL ₹315 / Target ₹384 → R**:R**** ≈ 1:3.6**
5⃣ SEBI Disclosure – Educational Purpose Only 📜
“This report is for educational purposes only and does not offer investment advice. Mr. Chartist (Rohit Singh) is a SEBI Registered Research Analyst under the Investology (INH000012376). Please consult a SEBI-registered advisor before taking any investment decisions. All investments carry risk. Past performance is not a guarantee of future results.”
📐 Pattern Identification: Inverted Head and Shoulder Pattern – a powerful bottom reversal pattern, signaling the end of a prolonged downtrend and readiness for upside expansion.
⏳ Time Taken in Formation: The pattern matured over 7 months (from December 2024 to July 2025). This is an ideal duration on the daily chart, allowing institutional buildup and accumulation phases to complete.
📊 Price Trend Before the Pattern: The stock had been in a downtrend, falling from ₹410 to a bottom near ₹240. This decline created the structural base for the left shoulder, head, and right shoulder.
📦 Price Movement Inside the Pattern:
Left Shoulder: Dec 2024–Jan 2025; shallow decline and mild recovery.
Head: Mar 2025; price dropped to the lowest point near ₹240 with sharp volatility.
Right Shoulder: May–July 2025; a higher low formation, tight consolidation, and buildup under neckline resistance – ideal structural behavior before breakout.
🚀 Breakout Zone & Behavior: The neckline near ₹312 has now been decisively broken with a strong bullish candle closing at ₹330.50, confirming a clean breakout with momentum.
2⃣ Volume Behavior & Breakout Validity 🔍
📉 Volume During the Pattern: During the body of the pattern (especially March to May), volume remained below average, indicating supply exhaustion and absorption from stronger hands.
📈 Volume Before the Breakout: Noticeable volume rise in the right shoulder phase, suggesting institutional entry ahead of breakout — a positive preparatory signal.
💥 Volume on Breakout Candle: Today’s breakout came with 2.2M shares traded, one of the highest volume bars in the last 3 months — a key confirmation of genuine breakout strength.
🔮 Volume After Breakout – What to Expect: Sustained high volume in the next 2–3 days will help validate follow-through. If volume contracts but price holds above ₹312–₹315, a healthy retest may offer secondary entry.
3⃣ Candlestick Dynamics & Trap Awareness 🕯️
🔥 Candles Formed Before Breakout: Price showed gradual higher lows, small-bodied candles, and a tight range under resistance — classic signs of energy buildup before breakout.
💎 Breakout Candle Characteristics: Today's candle is a bullish marubozu — full body, minimal wick, closing near day’s high. This reflects strong buyer conviction and zero rejection at breakout point.
⚠️ Impact of the Breakout Candle: A textbook breakout — no signs of trap or exhaustion. However, traders must monitor whether price sustains above ₹312–₹315 in the coming sessions.
4⃣ Trade Setup – Entry, Exit & Risk Strategy 🛍️
🛡️ Safe Entry: Enter on retest near ₹315–₹318 with bullish candle confirmation — allows entry with structure-based stop-loss.
⚡ Aggressive Entry: Enter at current levels (₹330.50) on strength, with a tight stop below breakout zone.
🎯 Target Zones (Measured Move):
Pattern Height: ₹312 (neckline) – ₹240 (head) = ₹72
Target 1: ₹312 + ₹72 = ₹384
Target 2: ₹410 (previous supply zone and gap resistance)
🚩 Stop-loss Placement:
Safe: SL below breakout zone ~₹308
Aggressive: SL near swing low ~₹315
⚖️ Risk**:Reward**** Planning:**
Safe: Entry ₹318 / SL ₹308 / Target ₹384 → R**:R**** ≈ 1:6.6**
Aggressive: Entry ₹330.50 / SL ₹315 / Target ₹384 → R**:R**** ≈ 1:3.6**
5⃣ SEBI Disclosure – Educational Purpose Only 📜
“This report is for educational purposes only and does not offer investment advice. Mr. Chartist (Rohit Singh) is a SEBI Registered Research Analyst under the Investology (INH000012376). Please consult a SEBI-registered advisor before taking any investment decisions. All investments carry risk. Past performance is not a guarantee of future results.”
Learn Today for Better Tomorrow
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Learn Today for Better Tomorrow
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.