Trading the Head & Shoulders - Normal and Inverted

This Exide Industries Chart is a perfect example of a Head & Shoulders pattern moving into an Inverted Head & Shoulders pattern.

In the H&S pattern, the neckline forms a crucial support level, whereas in an Inverted H&S, the Neckline forms crucial resistance.

In this particular pattern, volumes have increased during formation of the Head & Right Shoulder in the Inverted H&S, thereby giving an opportunity to buy if the resistance level is broken out of.