Renuka Sugar: Inverse H&S formation

Renuka Sugar is currently forming an inverse head and shoulders pattern, a classic bullish reversal pattern that often signals the end of a downtrend and the potential start of a new upward move. The pattern is characterized by three troughs, with the middle one (the head) being the lowest and the two outer troughs (the shoulders) being higher and roughly equal. The breakout level is identified at 54, which serves as the neckline of the pattern. A confirmed breakout above this level on strong volume would validate the pattern, indicating a bullish reversal and setting up a potential target of 68. Traders should watch for a decisive close above 54 to enter long positions, with stop-loss placements below the right shoulder i.e. 44 to manage risk.