Zomato has given a good range/double bottom breakout by breaking out above levels of 75 (one can consider a range of 72-76 or such similar range ) The bottom was at 45 and breakout range was at 75, which provides a distance of 30 rs to the pattern. Adding this 30 Rs to breakout level of 75 provides targets of 105. On line chart this target comes to 100.
disc: Bought Zomato recently post this breakout for trading positions . Usually once a stock breaks out of a strong resistance zone, there is often some retest at some point of time. And that is the time to be observant of the behaviour of the stock price as to how it behaves during the periods of retest. Sometimes it is a few days and sometimes it is a few weeks. Main thing is to see that key levels are not broken and stock prices consolidates above those levels.
Putting up a chart of Zomato ( highlighted earlier by @rupaniamit ) … Looks like the previously fancied platform companies are attempting a rally. Whether it becomes a major trend change, or is just a dead cat bounce needs to be seen.
