Double bottom is a Bullish Reversal Pattern that is used in Technical analysis to see for signals of a trend shift, from a downtrend to an Uptrend. This pattern is the Opposite of the Double-top pattern.
How to Trade the Pattern:
- Breakout Entry: Once the price breaks above the neckline, traders look for a buying opportunity.
- Target Price: The expected upward move is approximately equal to the distance from the top and bottom of the pattern.
- Stop-Loss: Placed below the second bottom to limit downside risk.
List of stocks that have formed Double Bottom on 1 Day time frame:
1. TRENT
Trent Limited is a leading Indian retail company and a part of the Tata Group, operating popular retail chains across fashion, lifestyle, and grocery segments. The company’s flagship brand, Westside, is a well-established fashion and apparel retailer offering contemporary clothing, footwear, and accessories.
With a market capitalization of Rs. 1,83,147 crores, the stock is trading at Rs. 5,152. It has fallen 38.26 percent from its 52-week high of Rs. 8,345. The Double Bottom breakout took place at the Price of 5,113.
2. ICICI BANK
ICICI Bank is one of India’s largest private-sector banks, offering a wide range of financial products and services to individuals, businesses, and corporations. It provides retail and corporate banking, home loans, personal loans, credit cards, wealth management, investment banking, and insurance solutions.
With a market capitalization of Rs. 8,95,776 crores, the stock is trading at Rs. 1,268. It has fallen 6.83 percent from its 52-week high of Rs. 1,361. The Double Bottom breakout will take place at the Price of 1,272
3. CIPLA
Cipla Limited is a leading Indian pharmaceutical company known for its commitment to making medicines affordable and accessible. It specializes in the development, manufacturing, and distribution of generic medicines, APIs, and OTC healthcare products.
With a market capitalization of Rs. 1,20,621 crores, the stock is trading at Rs. 1,493. It has fallen 12.27 percent from its 52-week high of Rs. 1,702. The Double Bottom breakout will take place at the Price of 1,492
Written By Abhishek Das
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