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 or from a bearish trend to a bullish trend. This pattern is the Opposite of the Double-top pattern.
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.
BAJAJ AUTO has formed a double bottom on its 1-Day Chart
The Breakout Level for the Double Bottom is Rs. 8,137, and the stock is currently trading above the breakout level of 8,261. The resistance zone for the stock is from Rs. 8,760 to 9,195 levels. And the Nearest support level for the stock is Rs. 7,868.
About the Company
Headquartered in Pune, Maharashtra, Bajaj Auto is one of India’s leading two-wheeler and three-wheeler manufacturers of India. The company is known for its renowned innovation, engineering excellence, and strong global presence.
Bajaj Auto manufactures a wide range of motorcycles, scooters, and auto rickshaws, with popular brands like Pulsar, Dominar, Platina, CT, and the iconic RE series in the three-wheeler segment. The company is a major exporter to several countries.
Written By Abhishek Das
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