We’re looking at the daily chart of Honasa Consumer. The stock has formed a classic double bottom pattern around the ₹255–260 zone, which is typically a strong reversal signal. After forming the second bottom, price started moving higher and has now broken above the neckline near ₹300.
What’s interesting here is the neckline retest. Instead of just shooting up, the stock is coming back to test the breakout level around ₹300. This is actually healthy price action. If buyers step in and the level holds as support, it strengthens the bullish case.
Based on the height of the pattern, the projected move could take the stock toward the ₹350–360 zone. That’s the potential upside area highlighted on the chart. On the downside, if price falls back below the neckline and sustains there, the bullish setup weakens.
So in simple terms:
Double bottom formed → Breakout above ₹300 → Retest in progress → Potential move toward ₹350+ if support holds.
This is a textbook breakout-and-retest structure many traders look for.
What’s interesting here is the neckline retest. Instead of just shooting up, the stock is coming back to test the breakout level around ₹300. This is actually healthy price action. If buyers step in and the level holds as support, it strengthens the bullish case.
Based on the height of the pattern, the projected move could take the stock toward the ₹350–360 zone. That’s the potential upside area highlighted on the chart. On the downside, if price falls back below the neckline and sustains there, the bullish setup weakens.
So in simple terms:
Double bottom formed → Breakout above ₹300 → Retest in progress → Potential move toward ₹350+ if support holds.
This is a textbook breakout-and-retest structure many traders look for.
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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.