Heromotoco had formed a head and shoulder pattern from Jan 2021 to Apr 2021 (duration around 3 months) indicating a distribution done by stronger hands. Our trade plan should be short below the right neck line and the stoploss at top of right shoulder. Considering the risk to reward ratio as 1, target was achieved in 12 days. Interestingly after the distribution the stock is currently forming a cup pattern indicating accumulation and cup has started to fill good time to make entry into the stock.
HEROMOTOCO – Head and shoulder continued by a CUP pattern
