CAMS | Reversal in Sight? How to Trade a Double Bottom📈 CAMS | How to Trade a Double Bottom
Stock: Computer Age Management Services Ltd (CAMS)
Timeframe: Daily
Pattern: Possible Double Bottom (bullish reversal structure)
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🔹 Pattern Identification
Bottom-1: 3632.40
Bottom-2: 3645
Neckline (Breakout Point): 3918
Candle Confirmation: Bullish Engulfing/Piercing on the second bottom
Volume: Improving on bounce, needs stronger confirmation on breakout
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📘 Regular Trading Strategy (Conservative)
The Double Bottom is confirmed only when price closes above the neckline with strong volume.
Entry: Go long on close > 3918 preferred with volume ≥ 1.5–2× 20-DMA
Measured Height: 3918 − 3632 = 286 pts
Targets:
🎯 4094 (62% move)
🎯 4204 (full measured move)
🎯 4380 (161.8% Fibonacci extension)
Stoploss: Below 3630 (pattern invalidation)
Invalidation: Daily close below the bottoms
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🔹 Alternative Entries
1️⃣ Retest Entry (Safer):
After breakout >3918, buy the pullback to neckline (3918–3925) if reversal candle appears.
SL below retest low.
2️⃣ Early Entry (Aggressive):
Trigger already seen at 3758.90 (bullish engulfing/piercing).
SL below 3668.
Add position if 3918 breakout confirms.
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📊 Key Levels
Supports: 3668 | 3599 | 3554
Resistances: 3783 | 3827 | 3895
Fibonacci Zones: 3821 (23.6%) | 3921 (38.2%) | 4009 (50%) | 4096 (61.8%) | 4221(78.6%) | 4380 (100%)
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💡 Trading View
CAMS is forming a potential Double Bottom reversal near major support.
Early signs of buying are visible at 3758.9, but real confirmation will come only above 3918 neckline.
Breakout with strong volume can open upside towards 4094 → 4204 → 4380.
📌 Bias: Bullish above 3750; stronger confirmation only on breakout above 3918.
📌 Risk: Invalidation below 3630.
👉 The Bullish Engulfing/Piercing candle at the second bottom MUST hold at daily close for the setup to remain valid.
⚠️ Disclaimer – Please Read Carefully
The information shared here is meant purely for learning and awareness. It is not a buy or sell recommendation and should not be taken as investment advice. I am not a SEBI-registered investment advisor, and all views expressed are based on personal study, chart patterns, and publicly available market data.
Trading — whether in stocks or options — carries risk. Markets can move unexpectedly, and losses can sometimes exceed the money you have invested. Past performance or past setups do not guarantee future results.
If you are a beginner, treat this as a guide to understand how the market works — practice on paper trades before risking real money. If you are experienced, always assess your own risk, position sizing, and strategy suitability before entering trades.
Consult a SEBI-registered financial advisor before making any real trading decision. By engaging with this content, you acknowledge full responsibility for your trades and investments.
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