Synopsis: Tata Motors Passenger Vehicles Ltd has formed a double-bottom pattern on the daily chart, indicating a potential bullish reversal in the near term.
The emergence of a double-bottom pattern after an extended downtrend underscores robust buying interest at lower levels. A clear breakout above the neckline points to the likelihood of a bullish trend reversal.
A double-bottom pattern points to a possible trend reversal following a previous downtrend, characterized by two comparable lows near a significant support zone. A decisive breakout above the neckline reflects increasing buying pressure, indicating that selling momentum is fading and that upward traction may begin to strengthen.
On Monday, Tata Motors Passenger Vehicles Ltd had formed a double-bottom pattern on the daily chart, indicating early signs of a potential reversal. The pattern has since confirmed, with the stock breaking above the neckline and now sustaining above that level. Continued strength above the neckline, backed by steady buying interest, reinforces the near-term bullish trend and supports further upside potential.
Tata Motors Passenger Vhcls Ltd Chart: Daily Timeframe
In a double-bottom pattern, upside targets are typically projected toward resistance levels above the neckline. Traders commonly use these levels to book partial or full profits, while monitoring price action closely for confirmation of continued momentum or early signs of exhaustion.
Indicator Confirmation
- RSI: The daily RSI indicates bullish momentum, as it rose from 56.4 in the previous trading session to 59.2 on Monday, confirming the bullish reversal.
- MACD: On the daily time frame, the blue MACD line was above the orange signal line, with the histogram turning green, indicating bullish momentum.
- Moving Averages: On the daily time frame, the 5-day moving average is above the 9-day moving average, further confirming a bullish trend.
- Price Volume Trend: The Price Volume Indicator confirms the uptrend, accompanied by a slight increase in buying volume in the daily time frame.
Implications
The formation of a double-bottom pattern signals possible upside momentum. A decisive close above the crucial Rs 375 mark, accompanied by strong volumes, would validate the reversal and reduce the likelihood of a false breakout. With the previous resistance near Rs 375 now turning into immediate support, holding above this level would strengthen the short-term bullish outlook.
About the stock
Tata Motors Passenger Vehicles (TMPV) is a leading Indian automaker with a strong portfolio of cars and SUVs known for design, safety, and performance. It offers multi-powertrain options, advanced connected features, and smart mobility solutions. A key player in India’s electric vehicle push, TMPV is driving sustainable, zero-emission mobility backed by strong design and R&D capabilities.
Over the past month, Tata Motors Passenger Vehicles Ltd has gained 10.04%. However, the stock has declined 8.83% over the past six months and is still down 6.3% compared to the same period last year. For more such technical stock ideas, click here to view our research page.
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