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As per the graphical diagram head and shoulders is formed. SHORT POSITION can be created
left shoulder has a good volume and right shoulder has a low volume and with a period of 3 months
Company – VEDANTA
ENTRY – 318
TGT – 288
SL – 348
NOTE – target achieved.
Dear Naveen Sir,
For this particular topic, your analysis is 70% correct. As you have mentioned rightly, the Chart you have posted had met the following conditions: High Volume on Left shoulder, Duration of 3 months, Low volume on right shoulder.
But, it has failed to meet the following two conditions:
- Significant rally prior to Head and Shoulder structure. ( There is a down trend before the formation of L.Shoulder)
- The Head should be the highest among the recent price action. ( in the price chart there is equivalent peak in month of June and August also)
So, from my perspective, I am not considering this as an Head and Shoulder price pattern. We shall check with Mr. Murugan Sir.
If I am wrong, please correct me.
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