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Double bottom

   Also found in: Acronyms, Encyclopedia, Wikipedia 0.01 sec.
Double bottom
A term used in technical analysis to refer to the drop of a stock's price, a rebound, and then a drop back to the same level as the original drop.

double bottom
In technical analysis, a chart formation indicating stock price recoverability over time. It is characterized by a drop in a stock's price to a low level, a recovery in price, and a second decline to the previous low price. If the stock price recovers a second time, the low price reached at the two bottoms becomes a level of support for the stock. It is a bearish sign if the stock subsequently falls through this level. Compare double top.
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double bottom

Double bottom. Double bottom is a term that technical analysts use to describe a stock price pattern that, when depicted on a chart, shows two drops to the same dollar amount separated by a rebound.

For example, if a stock that had been trading at about $28 a share dropped to $18, rebounded to trade at about $22 for several weeks, and then dropped to $18 again, analysts would identify $18 as a double bottom.

An analyst observing this pattern might conclude that investors were comfortable paying $18 for the stock, and that the price might not drop below that level in the near term. In technical terms, the analyst would say that there was support for the price. However, there's no guarantee that it might not drop further and hit a new low.



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Today's report, along with expected cash-flow sales, should drive December 2006 corn prices back to a double bottom in the charts.
To that end, he was in town last week promoting his Double Bottom Line Initiative, which invests state employee pension equity into urban real-estate developments through public-private partnerships.
A passenger ship usually has a double bottom - a second steel "skin" that provides extra protection in case a rock or iceberg punctures the outer hull (see miniposter, p.
 
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