India, March 5 -- The inverted head & shoulders pattern reflects fading selling pressure and growing buying interest, signalling a potential bullish reversal. The Inverted Head & Shoulders pattern features three troughs, the lowest in the middle (the head) and two higher ones on either side (the shoulders). A breakout above the neckline signals a potential bullish reversal.

On Wednesday, eClerx Services Ltd broke above the neckline of an inverted head-and-shoulders pattern on the 30-minute chart. A sustained move above the Rs 3,156 support level could trigger further gains, while a fall below this level may weaken the bullish outlook.

For an inverted head & shoulders pattern, targets are placed at nearby resistance or by projecting the ...