Technical Analysis – AVANCEON LTD (PSX, Daily Chart)
Pattern: Inverse Head and Shoulders
Divergence: Bullish
Analyst: Musarrat Karamat | Date: 13-06-2025
AVANCEON Ltd (listed on PSX) is currently forming a classic Inverse Head and Shoulders pattern, which is a strong bullish reversal setup. The neckline breakout has been identified near the ₨53.97 level, which is the Buy Stop trigger for a long position.
Buy Stop: ₨53.97 – A breakout above this level would confirm the reversal and signal bullish entry.
Stop Loss: ₨47.12 – Placed below the right shoulder, providing a safe risk buffer in case of a failed breakout.
Target 1 (TP1): ₨60.57 – The first target is derived from the neckline-to-head distance projected upward.
Target 2 (TP2): ₨66.35 – A more optimistic target if bullish momentum continues post-breakout.
The RSI (Relative Strength Index) below the chart shows a bullish divergence, which further supports the reversal thesis. The RSI broke out of a downtrend with increasing momentum, hinting that institutional buying may be underway.
The price is currently trading around ₨50.05, indicating that the breakout hasn’t occurred yet. Traders should patiently wait for confirmation above the buy stop level before entering the trade.
Conclusion:
The setup reflects a textbook inverse head and shoulders with bullish divergence confirmation. If the neckline is broken decisively with strong volume, the stock may rally toward ₨60.57 and ₨66.35. However, prudent risk management is crucial, with a stop loss at ₨47.12 to limit downside exposure.
Pattern: Inverse Head and Shoulders
Divergence: Bullish
Analyst: Musarrat Karamat | Date: 13-06-2025
AVANCEON Ltd (listed on PSX) is currently forming a classic Inverse Head and Shoulders pattern, which is a strong bullish reversal setup. The neckline breakout has been identified near the ₨53.97 level, which is the Buy Stop trigger for a long position.
Buy Stop: ₨53.97 – A breakout above this level would confirm the reversal and signal bullish entry.
Stop Loss: ₨47.12 – Placed below the right shoulder, providing a safe risk buffer in case of a failed breakout.
Target 1 (TP1): ₨60.57 – The first target is derived from the neckline-to-head distance projected upward.
Target 2 (TP2): ₨66.35 – A more optimistic target if bullish momentum continues post-breakout.
The RSI (Relative Strength Index) below the chart shows a bullish divergence, which further supports the reversal thesis. The RSI broke out of a downtrend with increasing momentum, hinting that institutional buying may be underway.
The price is currently trading around ₨50.05, indicating that the breakout hasn’t occurred yet. Traders should patiently wait for confirmation above the buy stop level before entering the trade.
Conclusion:
The setup reflects a textbook inverse head and shoulders with bullish divergence confirmation. If the neckline is broken decisively with strong volume, the stock may rally toward ₨60.57 and ₨66.35. However, prudent risk management is crucial, with a stop loss at ₨47.12 to limit downside exposure.
Feragatname
Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, işlem veya diğer türden tavsiye veya tavsiyeler anlamına gelmez ve teşkil etmez. Kullanım Şartları'nda daha fazlasını okuyun.
Feragatname
Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, işlem veya diğer türden tavsiye veya tavsiyeler anlamına gelmez ve teşkil etmez. Kullanım Şartları'nda daha fazlasını okuyun.