OIL is a beautiful example for the aforesaid pattern except its up-sloping Neckline as pattern with near Horizontal Neckline performs better. The pattern looks like normal head-and-shoulders except either with multiple shoulders or multiple heads but rarely both. It performs better than normal Head & Shoulder and trading rules are the same.
dhruvrajpal1414 ithik right,it is a monthly resistance it will may be becomes support in coming days,we know support becomes resistance and resistance becomes support
dhruvrajpal1414
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@rupambose32, I agree. This is the beauty of technical analysis. Everyone analyse the chart in a different way. :D
dhruvrajpal1414
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If you see the monthly chart of OIL INDIA it is at a major support area. Have a look Sir.
praveen.bhatiya
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@dhruvrajpal1414, I don't see a support in OIL India Monthly chart rather a Fib .5 Resistance.
@dhruvrajpal1414, i think it is right it is a resistance,it may be converst to support
MAYURSHAH444
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SO SIR OIL INDIA ACCORDING TO YOU IS IN AN UPTREND OR GO SHORT..!!
I AM AN IVESTOR HOLDING 500 SHARES @350
praveen.bhatiya
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@MAYURSHAH444, Investing is different than trading as the holding period differs. For Investing we concentrate more on long term view whereas for trading we can trade even very small time frame. My view on the oil is bearish from short term trading perspective. If the pattern works it could drag the price to below 300 level. It is up to you to react on this information.
MAYURSHAH444
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@Praveen.bhatiya, OH OK..Long term how u read it..? can it reech new highs
praveen.bhatiya
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@MAYURSHAH444, My reply could bring you confusion and be misleading as I've trained myself for swing trading. But if you still feel that I should give my personnel opinion just tell I would share my views.