- On the weekly chart, the index has retaken rising trend line last week, but has failed to pierce through slanting inverse head and shoulder neckline level.
- Even if the breakout happens this week, the question is will it matter? I would not give much importance to the formation…simply because inverse head and shoulder pattern is a reversal pattern, which needs to occur at the bottom of the trend and not around the top as can be seen now.
- The real bullish break would a weekly close above the falling trend line (red). On the lower side, a break below rising trend line – black would suggest a re-test of right shoulder bottom of 7029.41 levels.
