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.
RVNL has formed a double bottom on its 1-Day Chart
The Breakout Level for the Double Bottom is Rs. 371, and the stock is currently trading close to the breakout level at 371.15. The resistance zone for the stock is from Rs. 418 to 419 levels. And the Nearest support zone for the stock is Rs. 335 to 328.
About the Company
Rail Vikas Nigam Limited (RVNL) is a Navratna Central Public Sector Enterprise under the Ministry of Railways, Government of India. Established in 2003, RVNL serves as the construction arm of Indian Railways, focusing on the implementation of rail infrastructure projects across the country.
The company’s portfolio includes the development of new railway lines, doubling and tripling of existing lines, gauge conversion, electrification, construction of major bridges, workshops, production units, and metro projects.
Written By Abhishek Das
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