Tuesday, 27 June 2017

Ultratech Cement Head & Shoulder Formation

Ultratech Cement formed H&S pattern.  Past 4 months action formed Head & Shoulder pattern with 3987 level as neck line.   Stock closed below the neckline yesterday with moderate volume.

It is a complex head & shoulder formation.  It has two left shoulders and two right shoulders.

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 3500-3440 level.

There is a possibility of pull back to the neckline level as the stock is oversold in daily time frame.

Stoploss: Stop loss can be placed just above the 2nd right shoulder.


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