Double Bottom Bumi Resources

BUMI RESOURCES DOUBLE BOTTOMS  PATTERNS

Double Bottoms pattern formation should be preceded by a downward trend, then formed two valleys (A and C) which ideally has the same low level as shown in the graph below. Price movements in formation like this has the potential to be a pattern Double Bottoms, but it is not clear whether it will turn into sideways or uptrend. Although in need further confirmation, trendline penetration by the price movement may be an early sign for more intensive monitoring, especially if these price increases in volume accompanied the rise, too. cursory form of Double Bottoms pattern looks like the letter W. Final confirmation as a validation of this pattern is if the closing price is above the resistance line drawn horizontally from the highest point on the top in between in the valley in the formation of Double Bottoms (B). Then the target can be measured from the breakout point on the projection of the vertical distance between the "line of support with the highest point on the valley B.

 

Summary

Bumi Resouces stock patterning Double Bottoms, where the valley is the valley's first A and C is the second valley. Then the peak B is a point of resistance to the 2445 level until 2450. then the price closed at 2500 levels, on 9 March 2010 it was breakout and valid.Target price would then be achieved at 2700 levels until 2750.