HDFC Life - massive inverted Head & shoulders pattern?

It seems to me that HDFC Life is forming a massive inverted head and shoulders pattern, with the right shoulder just completed at Rs. 560 and a breakout from the downward sloping line (details in chart). Neckline and shoulders also pretty well enclosed in a parallel channel.. Only thing that doesn't seem to be tying up is the lack of volume spurt at the trendline break-out, but perhaps it will on break-above neckline.

Height of pattern is around Rs. 300-350, neckline is Rs. 650, would imply move well above Rs. 800... stop would be at low of right shoulder (Rs. 560 odd).. Watch for break above neckline..


Disclaimer: I am not a SEBI registered investment analyst. These are just thoughts/analysis for educational purpose, not a recommendation. Seek professional advice while investing.

Kommentera:

Break-out of head and shoulders confirmed over the past few days with higher volumes at point of break out and a successful re-test & rebound from the neckline around Rs. 640. Stock has hit a fresh high today on slightly higher volumes, so trade very much on. Stop is now at the neck-line around Rs. 640.