AVANCEON PSX (Daily Time Frame)

Technical Analysis – AVANCEON LTD (PSX, Daily Chart)
Pattern: Inverse Head and Shoulders
Divergence: Bullish
Analyst: Musarrat Karamat | Date: 13-06-2025

AVANCEON Ltd (listed on PSX) is currently forming a classic Inverse Head and Shoulders pattern, which is a strong bullish reversal setup. The neckline breakout has been identified near the ₨53.97 level, which is the Buy Stop trigger for a long position.

Buy Stop: ₨53.97 – A breakout above this level would confirm the reversal and signal bullish entry.

Stop Loss: ₨47.12 – Placed below the right shoulder, providing a safe risk buffer in case of a failed breakout.

Target 1 (TP1): ₨60.57 – The first target is derived from the neckline-to-head distance projected upward.

Target 2 (TP2): ₨66.35 – A more optimistic target if bullish momentum continues post-breakout.

The RSI (Relative Strength Index) below the chart shows a bullish divergence, which further supports the reversal thesis. The RSI broke out of a downtrend with increasing momentum, hinting that institutional buying may be underway.

The price is currently trading around ₨50.05, indicating that the breakout hasn’t occurred yet. Traders should patiently wait for confirmation above the buy stop level before entering the trade.

Conclusion:
The setup reflects a textbook inverse head and shoulders with bullish divergence confirmation. If the neckline is broken decisively with strong volume, the stock may rally toward ₨60.57 and ₨66.35. However, prudent risk management is crucial, with a stop loss at ₨47.12 to limit downside exposure.