Head and SHoulder visible on Weekly Time Frame

27 Jun

### Key Patterns
1. **Inverse Head and Shoulders Pattern**:
- **Left Shoulder**: Formed around late 2017.
- **Head**: Formed around early 2020.
- **Right Shoulder**: Formed around early 2023.
- This is a bullish reversal pattern suggesting a potential upward movement.

2. **Neckline**:
- The horizontal line connecting the peaks of the shoulders and the head, which has been broken recently indicating a potential upward breakout.

### Indicators
1. **Volume**:
- A spike in volume can be seen around the time of the breakout, which adds credibility to the breakout.

2. **RSI (Relative Strength Index)**:
- The RSI divergence indicator below the main chart shows bullish signals at various points where the stock was oversold (RSI near 30) and has moved upwards.
- Current RSI is around 54.61, which is in the neutral zone, suggesting there is still room for upward movement before becoming overbought.

### Trendlines
- An upward sloping trendline is drawn from the bottom of the head to the recent price action, indicating an ongoing uptrend.

### Price Levels
- **Current Price**: 127.25 INR
- **Support Levels**: Around the neckline level (~95.00 INR) and previous low points.
- **Resistance Levels**: Previous peaks and psychological levels such as 168 INR, 200 INR, etc.

### Analysis Summary
- **Bullish Signal**: The inverse head and shoulders pattern, a recent breakout above the neckline, and the confirmation with increased volume are strong bullish signals.
- **RSI**: The RSI is in the neutral zone, allowing for potential further upward movement.
- **Trendline**: The upward trendline suggests continued bullish momentum.

### Trading Strategy
- **Entry Point**: Consider entering around the current price level (127.25 INR) or wait for a slight pullback to the neckline (~95.00 INR) for a safer entry.
- **Stop Loss**: Place a stop loss slightly below the neckline (~90-95 INR) to manage risk.
- **Target Price**: Look for resistance levels as potential target points, starting with 150 INR and moving upwards.

This chart indicates a positive outlook for Autoline Industries, given the technical patterns and indicators. However, it is important to consider overall market conditions and other fundamental factors before making any trading decisions.