The Rounding bottom is also called a saucer bottom pattern, which is a bullish chart pattern and signals a reversal from a downtrend to an Uptrend. This pattern forms gradually and is usually a U-shaped pattern. It also indicates accumulation, which means that sellers are gradually taking an exit and buyers are taking control.Â
How to Trade the Pattern:Â
Entry is done when the price breaks above the resistance level, which was formed at the beginning of the pattern. The target is set by measuring the depth of the pattern ( depth from breakout level to bottom of pattern ), and the Stop-loss is placed at some points below the breakout level.
BHEL is the Stock that has formed this bullish rounding bottom pattern on its 1-Day Chart.
The Breakout Level for the Rounding bottom is Rs. 217.30, and the stock is currently trading at Rs. 231.10Â above the breakout level. The next resistance zone for the stock is around Rs. 253 to 256 levels. And the Nearest support zone for the stock is Rs. 210 to Rs. 208.
About the Company
​Bharat Heavy Electricals Limited (BHEL) is India’s largest engineering and manufacturing enterprise in the energy and infrastructure sectors. Established in 1964 and headquartered in New Delhi, BHEL is a central public sector undertaking under the Ministry of Heavy Industries.
The company specializes in the design, engineering, construction, testing, commissioning, and servicing of a wide range of products and systems for core sectors of the economy, including power generation (thermal, hydro, gas, nuclear, and solar), transmission, transportation, defence, aerospace, oil and gas, and emerging areas like battery energy storage systems and electric vehicle chargers.
Written By Abhishek Das
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