Godrej Properties Ltd : Dual Rounding Bottoms Pattern1. Overview
Godrej Properties Ltd. has exhibited a significant dual rounding bottom price pattern, indicating strong bullish reversals over extended periods. The first rounding bottom, spanning December 2021 to December 2023, was successfully completed, and its target was achieved according to the classical measurement rule.
Currently, the stock is forming a second rounding bottom between December 2024 and June 2025, signaling a potential new upward trend once confirmed. The RSI (Relative Strength Index) indicator also reflects this pattern by forming corresponding rounding bottoms, confirming positive momentum building at the indicator level.
2. Rounding Bottom Pattern: The rounding bottom is a long-term reversal pattern characterized by a smooth “U”-shaped price action that typically unfolds in three distinct phases:
Phase 1: Falling Prices with Rising Volume : Strong downtrend accompanied by rising volume reflects intensified selling pressure.
Phase 2: Falling Prices with Declining Volume: Price continues to drop but with diminishing volume, indicating that sellers are losing conviction.
Phase 3: Signs of Bullishness with Rising Volume: The emergence of bullish candles with rising volume signals growing demand and buyer interest.
3. Accumulation and Its Importance
Accumulation occurs during the rounding bottom's base formation, characterized by:
Three or more bottoms forming at nearly the same price level.
Volume contracting during price declines and expanding on minor upswings.
This pattern of price and volume confirms strong accumulation by informed investors, setting a foundation for the impending breakout.
The accumulation phase is crucial, as it represents the shift from seller dominance to buyer control, often preceding a significant price rally.
4. First Rounding Bottom (Dec 2021 – Dec 2023): Recap
The first rounding bottom completed a textbook formation over two years.
Following breakout above the neckline, the target price was met as per the classical measurement rule (distance from bottom to neckline projected upward).
Breakout was confirmed by a strong candle close above the neckline with rising volume, validating the reversal.
5. Current Second Rounding Bottom (Dec 2024 – June 2025)
Price action currently mirrors the classical three-phase rounding bottom structure:
Initial price drop with rising volume (Phase 1).
Subsequent price decline with decreasing volume (Phase 2).
Emerging bullish candles with increasing volume (Phase 3).
The key resistance level to watch is the neckline at ₹2500.
A sustained breakout above ₹2500 with a positive candle close and rising volume will confirm the pattern’s completion and trigger a strong bullish move.
6. RSI Confirmation
The RSI indicator is also forming a rounding bottom pattern synchronized with the price action. This alignment strengthens the validity of the pattern by confirming that momentum is gradually shifting from bearish to bullish territory. The RSI rounding bottom indicates that selling pressure is fading. Increasing RSI levels with rising volume provide a strong signal of increasing demand and improving momentum.
7. Conclusion & Trading Outlook
Godrej Properties shows a strong dual rounding bottom formation, with the first pattern successfully completed and the second underway:
The current phase suggests growing accumulation and increasing demand.
Confirmation awaits a breakout above ₹2500, validated by strong volume and bullish candle close.
The RSI rounding bottom adds conviction to this bullish setup.
Traders and investors should monitor volume and price action around the ₹2500 neckline for a confirmed breakout, which is likely to provide an attractive buying opportunity.
8. Risk Considerations
False breakouts or weak volume could invalidate the bullish outlook.
Broader market and sector-specific risks remain relevant.
Employ prudent risk management strategies with appropriate stop-loss placement.
Disclaimer: This report is intended for educational purposes and should not be considered financial advice. Please perform your own analysis or consult a professional before making investment decisions.
