Paint Stock Forming Bullish Rounding Bottom Pattern on Daily Chart; Check out key support & resistance levels

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. 

How to Trade the Pattern 

Entry is done when 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.

Asian Paints 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. 2,355, and the stock is currently trading at Rs. 2,460 above the breakout level. The next resistance zone for the stock is around Rs. 2,790 to 2,815 levels. And the Nearest support zone for the stock is Rs. 2,210 to Rs. 2,230.

About the Company

The company has come a long way since its small beginnings in 1942. It was set up as a partnership firm by four friends. Asian Paints became a corporate force and India’s leading paints company. Driven by its strong consumer focus and innovative spirit, the company has been the market leader in paints since 1967.

Asian Paints manufactures a wide range of paints for decorative and industrial use and also offers waterproofing, adhesives, and services under its portfolio. The company is also present in the Home Decor segment and offers Modular kitchens and wardrobes, Bath fittings and sanitaryware, Decorative lightings, uPVC windows and doors, wall coverings, Furniture, Fabric & Furnishings, and Rugs.

Written By Abhishek Das

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