A continuation head and shoulder pattern is a rare pattern. Normally, head and shoulder patterns are reversals. Rarely, we have a head and shoulder which is formed in the middle of a trend. The Nifty has made a bearish head and shoulder pattern inside an ongoing downtrend. Here is the chart:
The neckline was violated for the past two days. We can assume a rally on Friday which is likely to push prices back inside the neckline. If prices go above the right shoulder, this pattern is cancelled. But, the right shoulder is far away, so a stop should be above 4880 – the is the high of the day which was completely above the neckline.