Usha Martin is currently trying to take support at around its 200 dema at 118. In the past too it took support at its 200 dema when stock price was at 100.
It seems to be forming a symmetrical (or contracting triangle) triangle as marked by bold blue lines on the chart.
Another interesting aspect on the daily chart is the positive divergence in RSI seen in the past few days, when stock price hit a lower low but RSI hit a higher low. Last time it did it near the bottom when it tested 200 dema, it rallied from 100 to 157. Can it repeat the feat? Lets see.
Triangular formations are very tricky and keep everyone guessing, but if and when a breakout from triangle happens, it does so with a lot of force.
disc: invested as disclosed before.
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