Update on Usha Martin. As per the possibility mentioned in the post above, the stock price broke out from the 8-9 months long triangular consolidation and in the process posted a new all time high above 170 with huge volumes.
Symmetrical triangle or contracting triangle is a pattern where there is price compression for as long as the prices stay within a triangle and once breakout happen, price expansion is expected. We now have a stock that has broken out of a triangle with volume expansion and at all time highs. As with most stocks crossing all time highs, upside targets cannot be restricted to any levels. One can attempt to use fibonacci extensions, or some patterns providing targets to arrive at possible target. Otherwise its a blue sky scenario. Elliot Wave guys sometimes provide targets based on ratios of various waves. But irrespective of all these possibilities, idea should be to ride with appropriate stop losses. If any parabolic move happens, one can think about profit booking partially or fully. As of now, idea should be to ride with an open mind. (disc: invested as disclosed before. )
Worth noting is the fact that a brief attempt at a breakout from smaller triangle plotted within the bigger triangular pattern was made and stock price corrected along with overall market carnage, and retested breakout levels. Friday provided the first hint of bullishness when inspite of weak market sentiments, the stock price closed strong.
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