Inverted Head and Shoulder pattern in Everest Bank Ltd.

1. Breaking the strong resistance level of Rs 2,000 on January 18 with strong volume of 18,529 units and still trading above the resistance level of Rs 2,000.
2. Looking at chart point A, B and C signals there is a formation of inverted head and shoulder pattern. ‘A’ indicates left shoulder while ‘B’ indicates head and ‘C’ indicates right shoulder. Now, the target of this pattern is Rs 2,350. There are high chances that Everest Bank price may move further up as per this technical analysis tools.
3. Note that its previous resistance is also at Rs 2,350 and now another technical indicator head and shoulder is also indicating same price level as resistance.
4. Trend is strong and bullish for Everest Bank as per trend analysis.
5. Market trend has reversed from the point B which indicates the reversal of trend.

Recommendation:

As per technical analysis, the price of Everest Bank is on Bullish Zone. So it’s recommended to buy Everest Bank Limited around Rs. 2,050 level with first target of Rs 2,350 and second target of Rs. 2,430. Looking at current trend, the price may easily breach first resistance level within short span of time.

Sagun Shakya

Technical Investor

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