PNC Infra- Inverted Head and Shoulder Pattern

1⃣ Pattern Structure & Breakout Development 📈
📐 Pattern Identification: Inverted Head and Shoulder Pattern – a powerful bottom reversal pattern, signaling the end of a prolonged downtrend and readiness for upside expansion.
⏳ Time Taken in Formation: The pattern matured over 7 months (from December 2024 to July 2025). This is an ideal duration on the daily chart, allowing institutional buildup and accumulation phases to complete.
📊 Price Trend Before the Pattern: The stock had been in a downtrend, falling from ₹410 to a bottom near ₹240. This decline created the structural base for the left shoulder, head, and right shoulder.
📦 Price Movement Inside the Pattern:
Left Shoulder: Dec 2024–Jan 2025; shallow decline and mild recovery.
Head: Mar 2025; price dropped to the lowest point near ₹240 with sharp volatility.
Right Shoulder: May–July 2025; a higher low formation, tight consolidation, and buildup under neckline resistance – ideal structural behavior before breakout.
🚀 Breakout Zone & Behavior: The neckline near ₹312 has now been decisively broken with a strong bullish candle closing at ₹330.50, confirming a clean breakout with momentum.

2⃣ Volume Behavior & Breakout Validity 🔍
📉 Volume During the Pattern: During the body of the pattern (especially March to May), volume remained below average, indicating supply exhaustion and absorption from stronger hands.
📈 Volume Before the Breakout: Noticeable volume rise in the right shoulder phase, suggesting institutional entry ahead of breakout — a positive preparatory signal.
💥 Volume on Breakout Candle: Today’s breakout came with 2.2M shares traded, one of the highest volume bars in the last 3 months — a key confirmation of genuine breakout strength.
🔮 Volume After Breakout – What to Expect: Sustained high volume in the next 2–3 days will help validate follow-through. If volume contracts but price holds above ₹312–₹315, a healthy retest may offer secondary entry.

3⃣ Candlestick Dynamics & Trap Awareness 🕯️
🔥 Candles Formed Before Breakout: Price showed gradual higher lows, small-bodied candles, and a tight range under resistance — classic signs of energy buildup before breakout.
💎 Breakout Candle Characteristics: Today's candle is a bullish marubozu — full body, minimal wick, closing near day’s high. This reflects strong buyer conviction and zero rejection at breakout point.
⚠️ Impact of the Breakout Candle: A textbook breakout — no signs of trap or exhaustion. However, traders must monitor whether price sustains above ₹312–₹315 in the coming sessions.

4⃣ Trade Setup – Entry, Exit & Risk Strategy 🛍️
🛡️ Safe Entry: Enter on retest near ₹315–₹318 with bullish candle confirmation — allows entry with structure-based stop-loss.
⚡ Aggressive Entry: Enter at current levels (₹330.50) on strength, with a tight stop below breakout zone.
🎯 Target Zones (Measured Move):
Pattern Height: ₹312 (neckline) – ₹240 (head) = ₹72
Target 1: ₹312 + ₹72 = ₹384
Target 2: ₹410 (previous supply zone and gap resistance)
🚩 Stop-loss Placement:
Safe: SL below breakout zone ~₹308
Aggressive: SL near swing low ~₹315
⚖️ Risk**:Reward**** Planning:**
Safe: Entry ₹318 / SL ₹308 / Target ₹384 → R**:R**** ≈ 1:6.6**
Aggressive: Entry ₹330.50 / SL ₹315 / Target ₹384 → R**:R**** ≈ 1:3.6**

5⃣ SEBI Disclosure – Educational Purpose Only 📜
“This report is for educational purposes only and does not offer investment advice. Mr. Chartist (Rohit Singh) is a SEBI Registered Research Analyst under the Investology (INH000012376). Please consult a SEBI-registered advisor before taking any investment decisions. All investments carry risk. Past performance is not a guarantee of future results.”