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.
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.
UJJIVAN SMALL FINANCE BANK has formed a double bottom on its 1-Day Chart
The Breakout Level for the Double Bottom is Rs. 40.50, and the stock is currently trading above the breakout level at 44. The stock is also trading near a resistance zone, which is from 44 to 45.20 levels. And the Nearest support zone for the stock is Rs. 36.50 to Rs. 35.70.
About the Company
Ujjivan Small Finance Bank is a leading small finance bank that offers banking services to the underserved and unbanked segments of the Country, particularly in semi-urban and rural areas. It started as an NBFC but transitioned into a small finance bank in 2017. The company plays a critical role in India’s financial ecosystem with a strong focus on micro-lending, inclusive growth, and grassroots banking.
Written by – Abhishek Dass
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