Synopsis: Brigade Enterprises Limited has formed a double-bottom pattern on the 1-hour chart, signaling a possible near-term bullish reversal.
The formation of a double-bottom pattern following a prolonged downtrend highlights strong buying interest at lower levels. A decisive breakout above the neckline indicates a potential bullish trend reversal.
A double-bottom pattern signals a potential trend reversal, marked by two lows near key support. A breakout above the neckline shows rising buying pressure and weakening selling momentum, suggesting stronger upside potential.
On Monday, Brigade Enterprises Limited formed a double-bottom on the 1-hour chart. The pattern confirmed as the stock broke and held above the neckline, with continued buying supporting near-term upside.
In a double-bottom pattern, upside targets are usually set at resistance levels above the neckline. Traders often book partial or full profits at these points while watching price action for signs of sustained momentum or potential exhaustion.
Brigade Enterprises Limited Chart: 1-hour Timeframe
Indicator Confirmation
RSI: The daily RSI indicates bullish momentum, as it rose from 36.6 in the previous trading session to 39.9 on Monday, confirming the bullish reversal.
Price Volume Trend: The Price Volume Indicator confirms the uptrend, accompanied by a slight increase in buying volume in the daily time frame.
Implications
The double-bottom pattern signals potential upside. A strong close above Rs 744 with high volumes would confirm the reversal, with the previous resistance now acting as support, reinforcing short-term bullish momentum.
About the stock
Founded in 1986, Brigade Group is a leading Indian property developer with nearly four decades of experience. Renowned for creating landmark projects and trusted customer experiences, the company has shaped skylines in Bengaluru, Chennai, Hyderabad, Mysuru, Kochi, Thiruvananthapuram, and GIFT City across residential, office, retail, hospitality, and education sectors.
Over the past month, Brigade Enterprises Limited has remained largely unchanged, edging up just -0.8%. However, the stock has fallen 22.15% over the last six months and is down 24.39% on a year-on-year basis. For more such technical stock ideas, click here to view our research page.
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