India, Feb. 19 -- The inverted head and shoulders pattern shows sellers losing strength and buyers gaining control, signalling a potential bullish reversal. The inverted head and shoulders pattern consists of three lows, with the middle low (head) deeper than the two higher lows (shoulders). A breakout above the neckline indicates a possible bullish reversal.

On Wednesday, Godfrey Phillips India Ltd broke above the neckline of an inverted head and shoulders pattern on the 4-hour chart. After the breakout, the stock surged 10%. A sustained move above Rs 2,250 could lead to further upside, while a fall below this level may weaken the bullish outlook.

For an inverted head and shoulders, targets are placed at nearby resistance or by adding ...