4040 Technical Analysis: Double Bottom + weekly divergence4040 (Saudi Public Transport Co.)
Price has bounced from a key weekly support zone, forming a double bottom with strong bullish divergence on the weekly timeframe. On the daily chart, it has broken out of a downward trendline and successfully retested it, reinforcing the bullish outlook.
The first buy is at CMP, with Buy 2 positioned lower to average in case of a pullback. TP1 and TP2 are aligned with near-term resistances, while sustained momentum beyond TP2 opens room to ride the trend with a trailing stop. Stop loss is placed below 12.00 on a closing basis to define risk.
Recommended Levels:
Buy 1: 13.35 (CMP)
Buy 2: 13.00
Stop Loss: Closing below 12.00
Take Profit 1: 14.90
Take Profit 2: 16.90
Take Profit 3: Ride the trend with a trailing stop
Potential upside remains as long as price sustains above the weekly support. Happy trading!
