Double Bottom Breakout on NETFSILVER
Updated
Overview: The chart for NETFSILVER (Nippon India ETF) is showing a classic Double Bottom pattern, a bullish reversal signal that suggests a potential upward move. This pattern emerged after a period of consolidation near the ₹78.52 support zone, followed by two distinct troughs, marked as Bottom 1 and Bottom 2 on the chart.
Key Technical Highlights:
Double Bottom Pattern: The stock has formed two troughs, with the second bottom being slightly higher, indicating a diminishing selling pressure. The neckline (or resistance) has been breached at the ₹86.26 level, confirming the pattern's validity.
Target Price Projection: Based on the height of the double bottom pattern, the projected upside target can be estimated by measuring the distance between the neckline and the bottoms. This gives a potential target of ₹93.10, which is approximately 7.9% higher from the breakout level.
Key Levels to Watch:
Volume Analysis: The breakout occurred with a noticeable increase in trading volume, confirming the validity of the breakout. This suggests strong buying interest around the ₹82.15 to ₹86.26 levels.
RSI Momentum: The RSI is currently hovering around 62.77, indicating bullish momentum without being overbought. There’s still room for further upside before the RSI hits the overbought zone.
Conclusion:
With the successful breakout above the neckline at ₹86.26, the stock is positioned for an upward move towards ₹90.20 and ultimately ₹93.10. The increased volume and positive RSI divergence support the potential continuation of this rally. Traders should keep an eye on the volume and momentum to ensure that the breakout sustains.
Key Technical Highlights:
Double Bottom Pattern: The stock has formed two troughs, with the second bottom being slightly higher, indicating a diminishing selling pressure. The neckline (or resistance) has been breached at the ₹86.26 level, confirming the pattern's validity.
Target Price Projection: Based on the height of the double bottom pattern, the projected upside target can be estimated by measuring the distance between the neckline and the bottoms. This gives a potential target of ₹93.10, which is approximately 7.9% higher from the breakout level.
Key Levels to Watch:
- Support
- *Immediate Resistance
- Target
Volume Analysis: The breakout occurred with a noticeable increase in trading volume, confirming the validity of the breakout. This suggests strong buying interest around the ₹82.15 to ₹86.26 levels.
RSI Momentum: The RSI is currently hovering around 62.77, indicating bullish momentum without being overbought. There’s still room for further upside before the RSI hits the overbought zone.
Conclusion:
With the successful breakout above the neckline at ₹86.26, the stock is positioned for an upward move towards ₹90.20 and ultimately ₹93.10. The increased volume and positive RSI divergence support the potential continuation of this rally. Traders should keep an eye on the volume and momentum to ensure that the breakout sustains.
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