penny 1. **Rounding Bottoms** 🔵
The stock shows a series of **rounding bottoms** (marked on the chart), indicating a slow but steady shift from bearish to bullish sentiment. This pattern is like a **U-shape** 🏺, where the price slowly bottoms out and starts to rise again.
The concept of **higher highs (HH)** ⬆️ rounding bottoms shows that each new bottom forms at a higher level than the previous one, reflecting growing strength in the stock.
2. **Volume Contraction** 📉
**Whenever stock forms a rounding bottom, volume contracts** 🛑. This is visible in the early stages of these rounded formations, where the volume bars shrink.
Contraction often hints that **weak hands** are exiting the stock and strong hands are accumulating quietly.
3. **Volume Expansion on Breakout** 📈
As soon as the stock moves up**, you can see the **volume build** as well. This signals a breakout from the rounding bottom pattern as **new buyers** rush in with increasing enthusiasm 🔥.
4. **Multiple Rounding Patterns** 🔄
The stock exhibits multiple rounding patterns, and each is followed by a **rise** ⬆️ in price.
This shows the stock moves in cycles, consolidating for some time before **breaking out** again.
5. **Recent Move and Strong Push** 💥
The most recent move in October 2024 is dramatic. The stock surged from around ₹180 to ₹207, a significant gain of about **16.64%** 📊, suggesting bullish momentum is accelerating 🚀.
Look at the **volume spike** 🔊 accompanying the price surge—this confirms strong institutional or retail interest in the stock during this period.
6. **Key Takeaway: Patience Pays** ⌛
**Higher highs in rounding bottoms** indicate that the stock is slowly but consistently gaining strength. Though these formations take time to develop, they are often followed by strong upward movements 🏁.
Extra tip: When you spot **volume contraction** during a rounded bottom, it could signal a potential **entry point** before a breakout. The expansion in volume later confirms a **strong uptrend**.
