Double bottom in IT sector

Double Bottom

A double bottom is a pattern in asset prices that creates a W-shaped movement. It indicates that after two lows, there will be a significant possibility increase in price.

Double bottom
Double Bottom Pattern. Click to expand

Most of IT sector stocks are forming double bottom pattern right now.

Infosys

Infosys. Double Bottom
Infy. Click to expand

After forming double bottom, it brokeout with high volume and and pulled back with low volume, this could be nice opportunity.

Persistent System

Persistent System. Double Bottom
Persistent System. Click to expand

It formed nice range after forming double bottom.

HCL

HCL Tech, Double bottom
HCL. Click to expand

HCL tech is forming similar pattern

Similar pattern of double bottom  is forming in sonata software, wipro, birlasoft and Nifty IT index. This is a bullish pattern.

Always prioritize risk management and proper position sizing to ensure you stay on track towards your goals. While analysis is valuable, it’s important to acknowledge that it may not always yield the expected results. Be prepared to adapt if things don’t go as planned, and maintain a resilient mindset throughout your journey.

Disclaimer: – I am not SEBI registered advisor. Please consult a professional advisor before taking any decision. This is not buy/sell recommendation.

 

 

 

 

 

 

 

 

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