Eve & Eve Double Bottom: Keep this Stock on Radar for a Rally!
The double bottom chart pattern has been discussed several times in my write-ups. It is a reversal pattern that is generally formed after a noticeable downtrend and is known to reverse this prior downtrend to an uptrend. However, there is a slight variation to this pattern which is not known to everyone, primarily because it is discussed in top-notch books only.
The variation I am talking about is called – Eve & Eve Double Bottom pattern. It is simply a double bottom pattern with rounded bottoms rather than pointed ones which we generally see. Due to their rounded formation, these bottoms generally take a little bit more time to form. These two individual bottoms can also be looked at as two individual bases which cumulatively form a bigger base, i.e. the double bottom pattern. You can relate it to the fractal nature of the market. Those who are well versed in the Elliot Waves theory would understand the fractal nature.
Image Description: Daily chart of Heranba Industries
Image Source: Investing.com
Now as you have a bit of clarity on this Eve & Eve Double Bottom pattern, one stock that is currently displaying this pattern is Heranba Industries Limited. The company is in the business of manufacturing, marketing and exporting chemicals and fertilizers for crop protection.
Today, the share price of Heranba completed the formation of the second base of the double bottom chart pattern and has started to rally, depicting the last phase of the pattern. Technically, the pattern would complete after the stock delivers a clear breakout by rising above the peak of INR 537 which does not seem a challenge now. The stock is already up 2.36% in this session so far, trading at INR 532.9, by 10:21 AM IST and might deliver a breakout before the end of the session.
The implication of this pattern variation is also similar to the classic one. That is, the stock tends to travel at least the same distance (after the breakout) as the total height of the pattern. In the case of Heranba, above INR 537, the stock could rally to the nearest level of around INR 570 – INR 575 which is easily achievable considering the prolonged downtrend prior to the pattern. From the peak of INR 866.85, marked on August 2021, the stock has seen a one-way fall, making a clear lower low and lower high formation, depicting around a 42% fall to INR 500, which was recently touched. If this downtrend gets reversed, then even higher levels could come on the screen.
Check More Business News Click Here– Latest Business News
Check More Latest Cryptocurrency News Click Here– Latest Cryptocurrency News
The double bottom chart pattern has been discussed several times in my write-ups. It is a reversal pattern that is generally formed after a noticeable downtrend and is known to reverse this prior downtrend to an uptrend. However, there is a slight variation to this pattern which is not known to everyone, primarily because it is discussed in top-notch books only.
The variation I am talking about is called – Eve & Eve Double Bottom pattern. It is simply a double bottom pattern with rounded bottoms rather than pointed ones which we generally see. Due to their rounded formation, these bottoms generally take a little bit more time to form. These two individual bottoms can also be looked at as two individual bases which cumulatively form a bigger base, i.e. the double bottom pattern. You can relate it to the fractal nature of the market. Those who are well versed in the Elliot Waves theory would understand the fractal nature.
Image Description: Daily chart of Heranba Industries
Image Source: Investing.com
Now as you have a bit of clarity on this Eve & Eve Double Bottom pattern, one stock that is currently displaying this pattern is Heranba Industries Limited. The company is in the business of manufacturing, marketing and exporting chemicals and fertilizers for crop protection.
Today, the share price of Heranba completed the formation of the second base of the double bottom chart pattern and has started to rally, depicting the last phase of the pattern. Technically, the pattern would complete after the stock delivers a clear breakout by rising above the peak of INR 537 which does not seem a challenge now. The stock is already up 2.36% in this session so far, trading at INR 532.9, by 10:21 AM IST and might deliver a breakout before the end of the session.
The implication of this pattern variation is also similar to the classic one. That is, the stock tends to travel at least the same distance (after the breakout) as the total height of the pattern. In the case of Heranba, above INR 537, the stock could rally to the nearest level of around INR 570 – INR 575 which is easily achievable considering the prolonged downtrend prior to the pattern. From the peak of INR 866.85, marked on August 2021, the stock has seen a one-way fall, making a clear lower low and lower high formation, depicting around a 42% fall to INR 500, which was recently touched. If this downtrend gets reversed, then even higher levels could come on the screen.