BDL: DOUBLE BOTTOM BREAKOUTThe Double Bottom pattern is a bullish reversal chart pattern that signals the potential end of a downtrend and the beginning of an uptrend. It consists of two consecutive troughs (lows) at roughly the same level, separated by a peak. The pattern resembles the letter "W."
Key Features:
Two Lows: Nearly equal in price, indicating strong support.
Neckline: The peak between the two lows acts as a resistance level.
Breakout: A bullish signal is confirmed when the price breaks above the neckline with strong volume.
Price Target: The expected upward movement is typically equal to the distance between the lows and the neckline.
Double Bottom pattern in Bharat Dynamics Ltd. (BDL) is confirmed, with both lows near ₹888 and a breakout above the ₹1,345 neckline, the price projection suggests a potential upside. The expected price target can be estimated by measuring the distance between the neckline and the lows, which is ₹1,345 - ₹888 = ₹457. Adding this to the breakout point, the projected price target would be ₹1,345 + ₹457 = ₹1,802. If the stock sustains above ₹1,345 with strong volume, it could gain further bullish momentum, potentially reaching ₹1,800 or higher in the medium term.
