Observed a double bottom with good volume at point B and today the stock broke the neckline (point C) with a breakout gap and significant volume on the breakout day.The prediction is that the stock is going to be bullish for the next few days and it is going to there till it reaches the resistance.Since the market is already in the trending zone,i did not design the trade with the usual double bottom strategy with the stoploss being the bottom line and the target calculated with a risk reward ratio of 1.Instead i decided to keep the low of the bullish candlestick as stoploss and the target being calculated with a risk reward ratio of 1.5 since the market can keep the uptrend until it hits the next resistance level.
Jain Irrigation Systems-Double Bottom
