Double bottom is a Bullish Reversal Pattern that is used in Technical analysis to look for signals of a trend shift, from a downtrend to an Uptrend. This pattern is the Opposite of the Double-top pattern and forms after a bearish trend in the Chart.
How to Trade the Pattern
Once the price breaks above the neckline, traders look for a buying opportunity. The expected upward move is approximately equal to the distance from the top and bottom of the pattern. Stop-Loss is placed below the second bottom to limit downside risk.
GNA AXLES has formed a double bottom on its 1-Day Chart
The Breakout Level for the Double Bottom is Rs. 348, and the stock is currently trading close to the breakout level at Rs. 347.80. However, recently, after the results announcement, the stock had shot up but later retraced back to the breakout level.
The resistance zone for the stock is from Rs. 387 to Rs. 390 levels. And the Nearest support zone for the stock is Rs. 317 to Rs. 320.
About the Company
Founded in 1993 and headquartered in Punjab, the Company is a leading manufacturer of automotive transmission components, with a focus on axle shafts, spindles, and other drivetrain parts. The company supplies precision-forged components for a wide range of Vehicles, which include trucks, Buses, off-highway vehicles, tractors, and passenger cars.
Written By Abhishek Das
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