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.
The Defence Stock that has formed a double bottom on its Weekly chart is Bharat Dynamics (BDL)
The Breakout Level for the Double Bottom is Rs. 1,285, and the stock is currently trading at Rs. 1,348. The next resistance zone for the stock is Rs. 1,520 to 1,650. And the Nearest support zone for the stock is Rs. 1,140 to 1,080.
About the Company
Bharat Dynamics Limited (BDL) is a leading Indian Defence public-sector undertaking (PSU) under the Ministry of Defence, specializing in the manufacturing of missiles, torpedoes, and allied defense equipment. Established in 1970 and headquartered in Hyderabad, Telangana, BDL plays a crucial role in India’s defense sector, serving as a key supplier of strategic weapon systems to the Indian Armed Forces. It plays a key role in India’s defense sector, serving as a key supplier of several strategic weapon systems to the Indian Armed Forces.
Additionally, the one-year return for the share is 53 percent, and the five-year return for the stock is an incredible 1,366 percent..
Written By Abhishek Das
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