double bottom

Forming Double Bottom: (NNN), (LDR), (FRPT), (UNIS), (ATK)

These stocks, National Retail Properties, Inc, Landauer Inc, Force Protection Inc, Unilife Corporation, and Alliant Techsystems Inc, have been showing double bottom patterns on July 16. The double bottom pattern is found at the lowest point of an downward trend. This signals that the downward trend is weakening and that buyers are gaining interest. The start of the pattern is a new low during the downward trend and after this point it finds support which stops the stock from falling further. Once it has found support, it rises to a new resistance level. This sequence happens again and when the stock reaches its support level it will rise to the resistance level again, thus starting an uptrend. The stock needs to break out from the support level so it can rise further. High volume will validate a breakout. Investors should pay specific attention to the support and resistance levels, which will help them determine when to buy or sell the stock.

Shares of Unilife Corporation (UNIS) fell by 0.82% or $-0.04/share to $4.85. In the past year, the shares have traded as low as $3.85 and as high as $6.35. On average, 265990 shares of UNIS exchange hands on a given day and today's volume is recorded at 184909.


http://www.tickrwatch.com/2011/07/forming-double-bottom-nnn-ldr-frpt-unis.html