The "Rounding Bottom" or "Saucer Bottom" chart pattern is a technical analysis indicator that can signal a potential bullish reversal in the price of a stock. When observed in Bajaj Consumer's stock chart, this pattern suggests that the stock may have reached its lowest point and is poised for an upward trend.
Key points to note that when bullish curve started, started with Morning star then bullish piercing and finally bullish engulfing. Lows of the bullish candle indicate that the market has bottomed out.
Key Characteristics:
Shape: The pattern resembles a "U" shape, indicating a gradual shift from a downtrend to an uptrend.
Duration: It typically forms over a longer period, often several weeks to months, reflecting a slow shift in market sentiment. Here it takes more a year
Volume: Volume tends to decrease at the bottom of the pattern and increases as the price begins to rise, confirming the potential reversal.
Implications for Bajaj Consumer:
Market Sentiment: The pattern reflects a shift from bearish to bullish sentiment among traders and investors.
Entry Point: Investors might consider entering a long position as the stock breaks out from the rounding bottom pattern, signaling the start of a potential uptrend.
Target Price: The expected target price after the breakout can often be estimated by measuring the depth of the rounding bottom and projecting it upward from the breakout point.
How to Trade:
If Bajaj Consumer's stock shows a rounding bottom with the lowest point at ₹200 and the breakout occurs at ₹260, the depth is ₹60. Hence, the target price could be around ₹320 (₹260 + ₹60).
Regards
Arvind Yadav, Cfa
Arvind Share Academy
Key points to note that when bullish curve started, started with Morning star then bullish piercing and finally bullish engulfing. Lows of the bullish candle indicate that the market has bottomed out.
Key Characteristics:
Shape: The pattern resembles a "U" shape, indicating a gradual shift from a downtrend to an uptrend.
Duration: It typically forms over a longer period, often several weeks to months, reflecting a slow shift in market sentiment. Here it takes more a year
Volume: Volume tends to decrease at the bottom of the pattern and increases as the price begins to rise, confirming the potential reversal.
Implications for Bajaj Consumer:
Market Sentiment: The pattern reflects a shift from bearish to bullish sentiment among traders and investors.
Entry Point: Investors might consider entering a long position as the stock breaks out from the rounding bottom pattern, signaling the start of a potential uptrend.
Target Price: The expected target price after the breakout can often be estimated by measuring the depth of the rounding bottom and projecting it upward from the breakout point.
How to Trade:
If Bajaj Consumer's stock shows a rounding bottom with the lowest point at ₹200 and the breakout occurs at ₹260, the depth is ₹60. Hence, the target price could be around ₹320 (₹260 + ₹60).
Regards
Arvind Yadav, Cfa
Arvind Share Academy
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免责声明
这些信息和出版物并非旨在提供，也不构成TradingView提供或认可的任何形式的财务、投资、交易或其他类型的建议或推荐。请阅读使用条款了解更多信息。