Titagarh - Double Bottom Reversal PatternNSE:TITAGARH Made Beautiful Chart Structure of Double Bottom Reversal Pattern today before Q4 Results with Good Price and Volume action.
Price Action Analysis:
- After a sharp decline from December 2024 to February 2025, the stock has formed a rectangular consolidation pattern
- Current price at ₹806.90, up significantly by ₹57.80 (+7.72%) in today's session
- Strong bullish candle today with substantial range, suggesting renewed buying interest
- Price is testing the upper boundary of the consolidation range
Volume Analysis:
- Today's volume stands at 5.27M shares vs. an average of 1.98M
- This high-volume move indicates strong institutional interest
- Previous bounces from support also showed increased volume (green arrows)
- Volume confirmation adds credibility to the potential breakout scenario
Key Supports and Resistances:
- Strong horizontal resistance at ₹820-830 level (marked by red horizontal line)
- Multiple rejections at this level (marked by red arrows)
- Solid support established at ₹675-680 zone (green horizontal line)
- Major resistance above at ₹1,110 from the previous price structure
- Recent high mark at ₹1,370
Technical Patterns:
1. Rectangle Pattern- Price consolidating between ₹675-680 (support) and ₹820-830 (resistance)
2. Double Bottom- Formed at the support level (₹675) in March and early May
3. Multiple Rejection Points- Four distinct tests of resistance (red arrows)
4. Higher Lows- Recent price structure showing potential strength
Trade Setup:
- Rectangle Pattern breakout opportunity
- Confirmation: If Sustained trading above ₹830 with continued volume support
- Strong rally today suggests momentum building for potential breakout
Entry Points:
1. Aggressive Entry: Current level (₹806.90) with partial position
2. Confirmation Entry: On close above ₹830 resistance
3. Pullback Entry: If price retraces to ₹780 after initial breakout attempt
Exit Strategy:
- Target 1: ₹900 (initial psychological level)
- Target 2: ₹1,000 (round number resistance)
- Target 3: ₹1,110 (previous significant resistance level)
- Ultimate Target: ₹1,300-1,370 (previous high area)
- Trailing Stop: Consider a trailing stop of 3-5% once Target 1 is achieved
Stop Loss Placement:
- Aggressive Stop: ₹775 (below today's low)
- Conservative Stop: ₹740 (midpoint of the range)
- Pattern-Based Stop-Loss: ₹675 (below the established support level)
Risk Management:
- Position sizing: Limit risk to 1-2% of trading capital
- Risk-reward ratio: Minimum 1:1.5 (with conservative stop)
- Consider scaling in on confirmed breakout and scaling out at each target
Keep in the Watchlist.
NO RECO. For Buy/Sell.
📌Thank you for exploring my idea! I hope you found it valuable.
🙏FLLOW for more
👍BOOST if useful
✍️COMMENT below with your views.
Meanwhile, check out my other stock ideas on the right side until this trade is activated. I would love your feedback.
Disclaimer: "I am not SEBI REGISTERED RESEARCH ANALYST AND INVESTMENT ADVISER."
This analysis is intended solely for informational and educational purposes and should not be interpreted as financial advice. It is advisable to consult a qualified financial advisor or conduct thorough research before making investment decisions.
