PSX · PAPER, BOARD & PACKAGING · 1 Hour
MERIT Head & Shoulders breakdown
Merit Packaging Limited · 23 Oct 2026 · 15:30 PKT
▼ Bearish Breakout Pattern breakout With the trend
Closed at 8.50 on the breakout. Target 7.51, invalidation 9.33.
Trade plan
● Active- Close
- 8.50
- ▼ 3.41%
- Target
- 7.51
- -11.6%
- Invalidation
- 9.33
- +9.8%
RiskReward
- Reward : risk
- 1.2 : 1
- ATR
- 0.21
- Price now
- 8.68 +2.1%
Outcome measured on the 1 hour bars after the signal: target or invalidation, whichever is touched first; a bar touching both counts as invalidated.
- 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 broke below its head & shoulders on the hourly close at 8.50.
Projected target 7.51 (-11.6%). The pattern is invalidated beyond 9.33 (+9.8%), a reward-to-risk of about 1.2 : 1.
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 8.50.
- 2 The target, 7.51 (-11.6%), is the pattern's height projected from the breakout.
- 3 A move to the invalidation level, 9.33 (+9.8%), cancels the setup.
- 4 Reward : risk is 1.2 : 1: the distance to the target divided by the distance to invalidation.
- 5 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.