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 Bajaj Stock that has formed a double bottom on its Daily chart is Bajaj Housing Finance (BAJAJHFL)
The Breakout Level for the Double Bottom is Rs. 120, and the stock is currently trading at Rs. 125, which is also a minor resistance (marked with a horizontal red line). Following the Rs. 125 level. The next resistance zone for the stock is Rs. 130 to Rs. 136. And the Nearest support for the stock is Rs. 120, which is also the double bottom breakout point.
About the Company
Bajaj Housing Finance Limited (BHFL) is an Indian non-banking financial company (NBFC) specializing in housing finance solutions. Established in 2008 and headquartered in Pune, Maharashtra, BHFL is a wholly owned subsidiary of Bajaj Finance Limited, one of India’s most diversified NBFCs.
Written By Abhishek Das
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
