USHA MARTIN BREAKS OUT! 7.5% SURGE SIGNALS MASSIVE RALLY AHEAD

19 May

USHAMART Made Beautiful Chart Structure of Kinda Triple Bottom Reversal Pattern today after Q4 Results with Good Price and Volume action and Breaking the Trendline.

Price Action:
- The stock has been in a downtrend since November 2024, forming a clear descending resistance line (white diagonal Trendline)
- Currently showing strong breakout momentum at ₹334.85, up ₹23.75 (+7.46%) in today's session
- Successfully broken above both the downtrend line and horizontal resistance at ₹320-325
- Multiple tests of support at the ₹290 level have created a solid base for the current rally
- Higher lows forming since March indicate increasing buying pressure

Volume Analysis:
- Today's volume at 4.98M shares vs. average of 688.65K (over 7x normal volume)
- Previous support bounces (green arrows) also occurred with increased volume
- Extremely high volume on today's breakout confirms strong institutional interest
- Volume profile shows healthy accumulation during support tests

Key Support and Resistance Levels:
- Strong support established at ₹290 level (green horizontal line)
- Intermediate resistance/support at ₹320-325 (lower red horizontal line)
- Major resistance at ₹350 level (upper red horizontal line)
- The previous rejection point at ₹350 (red arrow) now becomes the next target
- Long-term resistance from October to December 2024 around ₹420

Technical Patterns:
1. Downtrend Line Breakout*- Price has decisively broken above the multi-month downtrend line
2. Kinda Triple Bottom- Formed at ₹290 level (February-May), creating a solid foundation
3. Ascending Triangle- Recent price action shows higher lows against horizontal resistance
4. Volume Confirmation- Massive volume spike validates the technical breakout
5. Bullish Engulfing Candle- Today's price action engulfs previous bearish candles

Trade Setup:
- Pattern: Downtrend line breakout + horizontal resistance break
- Confirmation: Strong price action with 7x normal volume
- Context: Potential trend reversal after extended downtrend and base formation

Entry Points:
1. Aggressive Entry: Current price (₹334.85) with partial position
2. Pullback Entry: On retest of breakout level ₹320-325
3. Confirmation Entry: Add positions on close above ₹350 (previous resistance)

Exit Strategy:
- Target 1: ₹350 (immediate resistance)
- Target 2: ₹380 (intermediate resistance based on prior support level)
- Target 3: ₹420 (major resistance from December 2024)
- Trailing Stop: Implement a 5% trailing stop after Target 1 is achieved

Stop Loss Placement:
- Aggressive Stop: ₹315 (below breakout level)
- Conservative Stop: ₹305 (midpoint between support and breakout)
- Pattern-Based Stop: ₹290 (below the triple bottom support)

Risk Management:
- Position sizing: Limit risk to 1-2% of trading capital
- Risk-reward ratio: Maintain at least 1:1.5 (with aggressive stop)
- Consider scaling in: 50% at current level, 25% on pullback, 25% on further confirmation
- Scale out: 30% at Target 1, 40% at Target 2, hold remainder with trailing stop

Today's powerful breakout on record volume after forming a kinda triple bottom pattern suggests a potential trend reversal. The breakout above both the descending trendline and horizontal resistance provides a compelling technical case for upside continuation. If the stock can maintain momentum above the ₹325 level, it could target the next resistance at ₹350 quickly, with potential for a move toward ₹380-420 in the coming weeks.

Keep in the Watchlist.
NO RECO. For Buy/Sell.

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Disclaimer: "I am not a SEBI REGISTERED RESEARCH ANALYST AND INVESTMENT ADVISER."
This analysis is intended solely for informational and educational purposes and should not be interpreted as financial advice. It is advisable to consult a qualified financial advisor or conduct thorough research before making investment decisions.

20 May

Not

Inside Bar Day

22 May

Not

Down 3% from RECO.
Aggressive Stop: ₹315 (below breakout level) Intact.

27 May

İşlem aktif

Pullback Entry: On retest of breakout level ₹320-325 Active
Above Trendline

28 May

İşlem kapandı: durdurma seviyesi

Aggressive Stop: ₹315 (below breakout level) Broken.
Still above Trendline