The Index has formed a Double Bottom Pattern where the breakout is expected. Double Bottom is a reversal pattern, breakout in the pattern is upside.

The Index is trading above the 10day EMA indicating short term positive move in the Index. We can expect the Index to trade above the 50 day EMA.

As per pattern the target should be of 318 points, which leads the index to a target of 6538. 1st Target can be considered 10% which comes upto 31 points.

Maintaining a SL of 1% below the neckline is advised.

Rsi has also given a breakout supporting the price action.

DOUBLE BOTTOM

Jul 18 2022