Munjal Auto - Double bottom breakout?

Stock Opportunities Techno-Funda Picks
1

Munjal Auto seems to have formed a double bottom and has broken out.
Before posting the chart, a brief write up on Munjal Auto.

  1. Munjal Auto is an Auto ancillarycompany and is the worlds largest manufacturer of exhaust systems.They also manufacture steel rim ,spoke rim and fuel tank
  2. Hero group company and promoter holding is 74.81%
  3. More than 90 % of sales is from exhaust system /mufflers
  4. PE of 12 and Debt to Equity of 0.4 and ROE of 28
  5. They have set up a plant recently and this plant is expected to bring in sales of 250 cr
  6. Hero Moto is the largest client.Other clients include Tata , Piagio, GM, Suzlon etc
  7. Technical partner is Samsung

Future triggers

  1. low commodity prices will protect the margins
  2. lowering interest rates will revive the auto sector in general
  3. increase in demand for exhaust systems and focus on pollution with augur well for the company

Now on to the double bottom breakout

munjal.png1366×768 27.3 KB

Disc : Invested and my views might be biased.

2

@kk82 , it is rounding bottom so can test 161% of entire consolidation

3

@ ajit.
Its not rounding bottom.
rounding bottom will be like a "U " where as a double bottom will be a " W "

But then again one part of it can be called as rounding bottom too. But yeah it is a double bottom in my opinion which is a stronger pattern than rounding bottom