Wednesday, 28 June 2017

SBI - Head & Shoulder Formation

SBI  formed H&S pattern.  Past 3 months action formed Head & Shoulder pattern with 282 level as neck line.   Stock closed below the neckline yesterday with good volume. 

MACD showing clear bearish divergence compared to left shoulder and head. 

Target for head & shoulders pattern is  distance from the top of the head to the neckline, then adding that difference under the neckline.  So in this case target would be 245 level

Stoploss: Stop loss can be placed just above the right shoulder. 


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