PSX · PAPER, BOARD & PACKAGING · 1 Hour
MERIT Head & Shoulders forming
Merit Packaging Limited · 22 Oct 2026 · 13:30 PKT
▼ Bearish Forming Chart pattern With the trend
Trade plan
- Close
- 8.78
- ▼ 0.11%
- Target
- 7.49
- -14.7%
- Invalidation
- —
- ATR
- 0.17
- Target
- Invalidation
- Pattern lines
- Fair value gap (bull / bear)
- Order block
- Strong / weak high and low
- BOS · CHoCHstructure breaks
SMC Structure · Order Blocks · FVG · Pattern Detector 1 Hour candles · click to enlarge
The breakdown
MERIT has completed a head & shoulders on the hourly chart with the head at 9.70 and the neckline at 8.62.
The pattern is confirmed by a hourly close below 8.59. The measured move from the neckline points to 7.49 (-13.1%). A close beyond the head at 9.70 cancels it.
Structure: bearish external, bearish internal (strong high 13.15). Nearest demand OB 7.10 - 7.24, supply OB 11.07 - 11.20.
How to read this signal
- 1 The breakout was confirmed by the 1 hour candle closing below the pattern at 8.78.
- 2 The target, 7.49 (-14.7%), is the pattern's height projected from the breakout.
- 3 Trend context: with the trend.
Pattern guide
About the head and shoulders
A head and shoulders is a topping pattern: three peaks with the middle one highest, resting on a "neckline" whose break often ends an uptrend.
- Confirmation
- A close below the neckline.
- Target
- The height from the head to the neckline, projected down from the break.
- Fails if
- A close back above the right shoulder or the neckline.