Bullish Reversal - Inverse Head & Shoulders Pattern

Instrument: TATA Consultancy Services (TCS) - NSE
Timeframe: 1 Hour
Pattern: An Inverse Head and Shoulders pattern has formed, indicating a potential bullish reversal.

Key Observations:
The Inverse Head and Shoulders pattern is still forming, but entering early at the Right Shoulder can provide an improved risk-reward ratio


Early Entry Plan:
Entry: Near the Right Shoulder level at ₹4,080.
Stop Loss: Below the Head level at ₹3,990 (key support).
Target 1: ₹4,130 (Neckline resistance).
Target 2: ₹4,280 (mid-term target).
Target 3: ₹4,400 (pattern target).


Rationale for Early Entry:
Entering near the Right Shoulder minimizes the stop-loss distance while allowing for participation in the potential breakout.
Risk-Reward Ratio: Early entry improves the ratio significantly compared to waiting for a neckline breakout.

Indicators for Confirmation:
RSI Divergence: Look for RSI to stay above 40 to confirm bullish momentum.
Volume: Accumulation near the right shoulder level indicates stronger bullish interest.


Caution:
If price breaks below ₹3,990 (Head level), it invalidates the pattern.