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Inverse HNS on Lead Daily Chart, Ready to Blast?

Inverse Hns Lead May 24-13

Here is the example of Inverse head and shoulder bottom which appears on Lead MCX daily continuation chart. As shown in chart above recently metal has broken out above its neckline resistance at 112. During yesterday’s decline leaded did an intraday low 112.10 but couldn’t break that level because of existence of neckline resistance which has now turned support. As per the depth of this pattern lead is now likely to hit 120 in coming days. Areas of 118.60 are the 50% Fibonacci retracement of previous bearish that may work as good resistance. Support is now seen near 112 and 2 or more closing below the same may hurt our bullish expectations and then failure of inverse head and shoulder pattern may occur.

Recommendation: Buying lead between 113.60-112.50 with stop loss below 111.50 on daily closing basis for targeting 118-120 might be appropriate in short term currently trading at 113.90.

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