Update [16th Dec]: Today the stock closed below H&S neckline. However the 5 waves seem clear now, which means a pullback maybe on cards.
Crompton Greaves (NSE:CROMPTON) has formed a nice H&S pattern. Right shoulder seem complete and price is testing the neckline.
So far, there is no breakdown and volume activity is also missing. A clear breakdown with surge in volume would be good indication of price breaking down from neckline. As per classic TA, it could give a target below 300 if this H&S breaks down.
If you observe closely, you can count 5 waves down in right shoulder which gives some weight to potential downside. Having said that, after 5 waves we get corrective 3 waves which might result in retest of the neckline.
Disclaimer: Purpose of this post is to educate on technical analysis methodologies and not giving trading/investing advice.
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