Ashok Leyland formed a Double Bottoms Formation ( Adam & Adam) on the daily chart.
A double bottom pattern is a classic technical analysis charting formation that represents a major change in trend and a momentum reversal from a prior down move in market trading. In this particular Adam & Adam formation the shape of each bottom should appear similar, that means both should look narrow, not one wide and one narrow, perhaps with a
long, downward price spike or tail. The pattern is confirmed when the price breaks the confirmation line. This pattern forms the shape of the letter “ W”.
Ashok Leyland broke the confirmation line and has also retested the confirmation line which indicates the presence of large buyers and strong support near the confirmation line.
Momentum Indicators - On the Daily timeframe, the stock is trading near its 11 day EMA and above 22 day EMA, RSI is at 56 and MACD is above zero line suggesting positive momentum.
Price Structure- On the Daily timeframe, it looks like the stock has completed its corrective phase with the Fib retracement of 38.2% from its current swing low of Rs. 191.86 and is ready for an up move.
CMP- Rs. 220
Entry Price - Above Rs.226
Target Price- Rs.250 ( 13%) ( According to Measured Move)
SL - 218 ( Breaking the confirmation Line)
Disclaimer: This is not a buy/sell recommendation. For educational purpose only. Kindly consult your financial advisor before entering a trade.
A double bottom pattern is a classic technical analysis charting formation that represents a major change in trend and a momentum reversal from a prior down move in market trading. In this particular Adam & Adam formation the shape of each bottom should appear similar, that means both should look narrow, not one wide and one narrow, perhaps with a
long, downward price spike or tail. The pattern is confirmed when the price breaks the confirmation line. This pattern forms the shape of the letter “ W”.
Ashok Leyland broke the confirmation line and has also retested the confirmation line which indicates the presence of large buyers and strong support near the confirmation line.
Momentum Indicators - On the Daily timeframe, the stock is trading near its 11 day EMA and above 22 day EMA, RSI is at 56 and MACD is above zero line suggesting positive momentum.
Price Structure- On the Daily timeframe, it looks like the stock has completed its corrective phase with the Fib retracement of 38.2% from its current swing low of Rs. 191.86 and is ready for an up move.
CMP- Rs. 220
Entry Price - Above Rs.226
Target Price- Rs.250 ( 13%) ( According to Measured Move)
SL - 218 ( Breaking the confirmation Line)
Disclaimer: This is not a buy/sell recommendation. For educational purpose only. Kindly consult your financial advisor before entering a trade.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.