Synopsis: Max Healthcare Institute Ltd has formed an Inverted Head & Shoulders pattern on the 1-hour chart, suggesting a potential near-term bullish reversal
The Inverted Head & Shoulders pattern signals weakening selling pressure and rising buying interest, indicating a bullish reversal. The Inverted Head & Shoulders has three troughs, with the middle lowest (head) and two higher sides (shoulders). A breakout above the neckline signals a potential bullish reversal.
On Wednesday, Max Healthcare Institute Ltd broke the neckline of an Inverted Head & Shoulders pattern on the 1-hour chart. A sustained move above Rs 1,040 level could drive further upside, while a drop below this level may weaken the bullish outlook.
For an Inverted Head & Shoulders, targets are set at immediate resistance or by projecting the head-to-neckline distance upward. Traders trail profits while watching volume and momentum for confirmation.
Max Healthcare Institute Ltd Chart: 1-hour Timeframe
Indicator Confirmation
- RSI: The daily RSI indicates bullish momentum, as it rose from 52 in the previous trading session to 58.6 on Wednesday, confirming the bullish reversal.
- MACD: On daily time frame, the Blue MACD line crossed above the orange signal line, with the histogram turning green, indicating bullish momentum.
- Moving Averages: On daily time frame, the 5-day moving average has crossed above the 9-day moving average, further confirming a bullish trend.
- Price Volume Trend: The Price Volume Indicator confirms the uptrend, accompanied by a sharp increase in buying volume in daily time frame.
- Implications: The Inverted Head & Shoulders pattern indicates potential upside. Holding above Rs 1,040 support, backed by strong volumes, would reinforce near-term bullish momentum.
About the stock
Max Healthcare, one of India’s largest healthcare providers, operates 20 facilities (5,200 beds) across North India, including tertiary and quaternary hospitals, secondary care hospitals, and medical centres. The Healthcare known for clinical excellence and advanced patient care, its Mohali and Bathinda hospitals are run under a PPP model with the Punjab government.
Over the past month, Max Healthcare Institute Ltd has gained 4.12%. However, over the last six months, the stock has declined by 16.45%, while showing a year-on-year increase of 3.49%. For more such technical stock ideas, click here to view our research page.
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