Double bottom chart patternICICI Securities given double bottom formation on chart
breakout level is 577
if price sustain above 577 there will be more up side in stock
you can place target up to 734 after
This breakout level is resistance which will become support after breakout
once it break 577 price will suddenly rise after it may be some profit booking for intraday traders those who take it at breakout because of this profit booking by very short term traders this will take price down so it may retest the level of 577 after breakout
when it retest that level resistance will become support here again fresh buying will come those who not able to take because of fast up movement at breakout they are waiting to take again if price come at that level of 577 this will lead to take price again in up direction after retesting from here there may be a good move in stock for target of 734
Double Bottom chart pattern :
This chart pattern is seems as " W " pattern
where price comes down from higher side and give a price correction which make first bottom
Then price again try to follow trend and comes down but price rejected to go more down by buyers and near support of first bottom it reject the trend continuation
and this up move from support with first bottom create second bottom on chart which seems as "W"
At previous correction high by price given last swing high this high is consider as breakout level for double bottom chart pattern
This chart formation is a sign of trend reversal
