Mothersumi has traces of flag pattern alongside double bottom

  • The stock is currently consolidating above the neckline of the double-bottom formation and expected to form continuation flag pattern.
  • On the daily chart, the stock has witnessed the increase in volume at the first bottom and at the final leg of the reversal pattern.
  • A strong support is around 90 level where the double bottom is settled after a two-year downtrend. Likewise, the resistance is probably at 160 level.

  • Furthermore, The Bollinger band is started to widen the width as the stock price is closed above the upper band.
  • The traces of flag pattern alongside double bottom and increase in volume at key areas suggests that bearish trend is leaving and the stock is likely to rise.