Bharat Electronics falls below head and shoulders neckline

Bharat Electronics Limited shares fell 1.34% to Rs 383.10 as the stock slipped below the neckline of a head and shoulders pattern. Support is near Rs 361. Bharat Electronics Limited [

] shares fell 1.34% to Rs 383.10 on 1 October. The stock slipped below the neckline of a head and shoulders pattern that has formed at the top. The session opened at Rs 385.20 and touched a low of Rs 378.65. A head and shoulders pattern is a reversal setup, and a move below its neckline is often read as a sign that the earlier uptrend is losing strength. The data gives a mixed picture. The RSI reads 36.59, near the lower end of its recent range, which shows weak momentum but not an extreme. The neckline break is a caution flag. It does not show that a deeper fall is due, since a pattern can fail if the price recovers above the neckline. Rs 361 may act as the immediate support. A fall below it would put lower levels in view. On the upside, the 20-day EMA at Rs 395 is the immediate resistance. A move above Rs 395 would bring a recovery attempt into focus. Neutral stance while price trades between Rs 361 and Rs 395. Disclaimer: I do not hold any position in this. This content is for informational purposes only and is not a recommendation to buy or sell. Investments in securities are subject to market risks. Please read all related documents carefully before investing.