Continuing with the previous examples of Reversals of Bearish H&S patterns, another one that played out well is of Powermech Projects:
- After a Multi Year Inverse H&S reversal pattern, a tremendous upmove followed.
- This was followed by a fall from ~2400 to 1570 levels.
- An interesting thing to note is that this fall was forming a bearish H&S pattern, leading participants to believe a bigger fall is going to follow.
- However, this turned out to a nice shakeout of weaker hands ( red circle) and price fell below the H&S trendline confirming a pattern activation, only to reverse back above it.
- This shakeout also held the Fibo 0.5 levels around 1570-1600 levels.
The stock today has created its ATH at 3675.
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