This is a double bottom with increasing volume (in the Bottom) like textbooks.
Sometimes in a bear trend people confuse a support tested twice with a double bottom this happen when you use intraday or daily charts only
happens when people rush and do not wait for price confirmation, even this idea need more confirmation (Price Action above 7.40 and 8.10)
This idea need a breakout of the resistance line (Red Arrows)
But this is a good example of a Double Bottom for two reasons
* The Increasing Volume
* The distance in time from the first support to the second support (Blue Arrows) 8 Months and 15 days
Plus the point of view from a weekly chart to not fall in fake bottoms due to the noise and volatility of the price form the intraday charts
Again I repeat look the volume in this idea (Volume is very important in the world of stocks)
Finally the fundamental argument that support this idea is a Bullish Oil Futures mean higher earnings for Energy Companies
Find a strong sector and pick stocks.
Sometimes in a bear trend people confuse a support tested twice with a double bottom this happen when you use intraday or daily charts only
happens when people rush and do not wait for price confirmation, even this idea need more confirmation (Price Action above 7.40 and 8.10)
This idea need a breakout of the resistance line (Red Arrows)
But this is a good example of a Double Bottom for two reasons
* The Increasing Volume
* The distance in time from the first support to the second support (Blue Arrows) 8 Months and 15 days
Plus the point of view from a weekly chart to not fall in fake bottoms due to the noise and volatility of the price form the intraday charts
Again I repeat look the volume in this idea (Volume is very important in the world of stocks)
Finally the fundamental argument that support this idea is a Bullish Oil Futures mean higher earnings for Energy Companies
Find a strong sector and pick stocks.