INVERTED HEAD & SHOULDER PATTERN in IRCTC

This chart indicates a possible *Inverse Head and Shoulders* (H&S) pattern forming in IRCTC on the daily timeframe. Here's the analysis and trade advice based on this setup:

### **Pattern Identification**
1. **Left Shoulder**: The first dip followed by a recovery.
2. **Head**: A deeper dip forming the lowest point in the pattern.
3. **Right Shoulder**: A higher low similar in depth to the left shoulder.
4. **Neckline**: The sloping black dashed line acting as the resistance level connecting the peaks of the left shoulder and right shoulder.

### **Key Levels**
- **Neckline Breakout**: A breakout above the neckline (around ₹801-₹805) would confirm the pattern.
- **Support Zone**: ₹753 (pink zone below the shoulders).
- **Resistance Zone**: ₹860 (orange box above the neckline).
- **Target**: Upon breakout, the measured move (distance from head to neckline added to breakout) projects a target near ₹860-₹880.

### **Trade Setup**
#### **Long Position**
1. **Entry**:
- On a confirmed breakout above ₹805 (neckline), with strong volume.
2. **Stop Loss**:
- Below ₹753 (below the head's low) to minimize risk.
3. **Target**:
- First target: ₹860 (upper orange resistance box).
- Extended target: ₹880 (based on measured move).
4. **Risk-to-Reward**:
- This trade offers a favorable risk-to-reward ratio if the breakout is valid.

#### **Invalidation**
- If the price closes below ₹753, the bullish inverse head and shoulders pattern becomes invalid.

### **Additional Notes**
- The purple downward trendline and channel are key—if the price stays within the channel and fails to break out, the bearish trend could continue.
- Look for increasing volume during the breakout attempt as confirmation.

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