Pattern: Double Bottom with Resistance Break Attempt
Stock: Kajaria Ceramics Limited
Timeframe: Weekly
Status: Approaching Resistance Break with Rising Volume
Pattern Characteristics:
The stock has tested its resistance 3 times in the past but has failed to break above it.
Double Bottom Formation: A bullish reversal pattern, indicating the stock has likely found a solid support base and is gearing up for a potential breakout.
Volume: A build-up in volume suggests increasing market interest and buying strength.
Key Observations:
Resistance Level: The stock is currently approaching a critical resistance level, which it has tested three times before. If this level is broken, it could trigger a significant rally.
Double Bottom Pattern: This classic bullish reversal pattern forms after two failed attempts to push lower, with the second bottom often confirming a potential trend reversal.
Volume Confirmation: Volume has been steadily increasing, which supports the likelihood of a successful breakout.
Breakout Implications:
1) Bullish Breakout:
If the stock breaks above the resistance, it could signal a significant upside with the double bottom pattern confirming the bullish trend.
Watch for volume to confirm the breakout, which strengthens the case for sustained upside movement.
2)Potential Retest:
After a breakout, the stock might pull back to retest the broken resistance level, which could act as new support. A successful retest would further validate the breakout.
Trading Strategy:
Entry: Consider entering the trade once the stock decisively breaks above the resistance level, ideally with strong volume confirmation.
Stop Loss: Place a stop loss below the recent low or second bottom to manage risk.
Target: Use prior highs or Fibonacci extensions to determine profit targets.
Stock: Kajaria Ceramics Limited
Timeframe: Weekly
Status: Approaching Resistance Break with Rising Volume
Pattern Characteristics:
The stock has tested its resistance 3 times in the past but has failed to break above it.
Double Bottom Formation: A bullish reversal pattern, indicating the stock has likely found a solid support base and is gearing up for a potential breakout.
Volume: A build-up in volume suggests increasing market interest and buying strength.
Key Observations:
Resistance Level: The stock is currently approaching a critical resistance level, which it has tested three times before. If this level is broken, it could trigger a significant rally.
Double Bottom Pattern: This classic bullish reversal pattern forms after two failed attempts to push lower, with the second bottom often confirming a potential trend reversal.
Volume Confirmation: Volume has been steadily increasing, which supports the likelihood of a successful breakout.
Breakout Implications:
1) Bullish Breakout:
If the stock breaks above the resistance, it could signal a significant upside with the double bottom pattern confirming the bullish trend.
Watch for volume to confirm the breakout, which strengthens the case for sustained upside movement.
2)Potential Retest:
After a breakout, the stock might pull back to retest the broken resistance level, which could act as new support. A successful retest would further validate the breakout.
Trading Strategy:
Entry: Consider entering the trade once the stock decisively breaks above the resistance level, ideally with strong volume confirmation.
Stop Loss: Place a stop loss below the recent low or second bottom to manage risk.
Target: Use prior highs or Fibonacci extensions to determine profit targets.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.