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.
This Double Bottom Pattern being formed on Reliance is called the Adam & Adam Double Bottom Pattern, which has unique characteristics of two V-shaped bottoms.
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.
Reliance has formed an Adam & Adam double bottom on its 1-Day Chart
The Breakout Level for the Double Bottom is Rs. 1,306, and the stock is currently trading above the breakout level at Rs. 1,354. The resistance zone for the stock is from Rs. 1390 to Rs. 1,443 levels. And the Nearest support level for the stock is Rs. 1,218
About the Company
Reliance Industries Limited (RIL) is one of India’s largest and most diversified companies, headquartered in Mumbai. Founded by Dhirubhai Ambani in 1966 and currently led by Mukesh Ambani, RIL operates across multiple sectors, including energy, petrochemicals, retail, telecommunications, and green energy.
It owns the world’s largest oil refining complex in Jamnagar and is a major player in India’s petrochemical and natural gas markets. Through Reliance Retail, it has become the country’s biggest retailer, while its telecom arm, Jio, transformed India’s digital landscape with affordable 4G & 5G services.
Written By Abhishek Das
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