Nifty 50 - Inverse Head & Shoulders Pattern | Potential Reversal

🔍 Pattern Identified: Inverse Head & Shoulders (IHS)

We can see a classic IHS formation on the Nifty 50 Index (4H timeframe), which is a bullish reversal pattern.

📝 Key Observations:

✅ Prior Downtrend: A prolonged bearish move before the pattern formation.
✅ Left Shoulder: Initial low followed by a bounce.
✅ Head: A lower low, forming the bottom of the pattern.
✅ Right Shoulder: A higher low, signaling reduced bearish pressure.
✅ Neckline Resistance: Breakout above 23,500 could confirm the pattern.

📊 Potential Trading Plan (For Learning Purposes Only! Not Financial Advice)
🔹 Entry: Above neckline breakout (~23,500)
🔹 Target: Measured move projection (~24,500-24,700)
🔹 Stop-Loss: Below right shoulder (~22,750)
🔹 Risk-Reward: Should be favorable (minimum 1:2)

⚠️ Important Considerations:
🔹 Volume Confirmation: A breakout should have strong volume to be valid.
🔹 Retest Possibility: Price may retest neckline before moving higher.
🔹 Market Conditions: Always check global cues and sentiments before executing trades.

📢 Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. I am not a SEBI-registered analyst. Always do your own research and consult a qualified financial professional before making investment decisions. Trade responsibly! ✅