Bottom Reversal: Stock Jumps 5%, Volume Expands 800%!

  • Stock Market Analysis
Aayush Khanna - Investing.com

Traders who are hunting for stocks that are trading at the lower levels to avoid the downside risk in case the market keeps on falling should keep Borosil Renewables Limited (NS: BORO ) on the watchlist. It is a solar glass manufacturer with a market capitalization of INR 5,362 crore.

The stock started coming on investors’ radar since morning. Looking at the daily chart structure, a medium-term downtrend is clearly visible. There’s no denying that investors who steered clear from this counter were better off than those who are invested in it. However, the picture seems to be changing as the stock jumped over 5% to INR 434, by 2:00 PM IST and surged past a falling trendline resistance on the daily chart.

Image Description: Daily chart of Borosil Renewables with volume bars at the bottom

Image Source: Investing.com

This breakout is denoting a probable trend reversal and as the stock has already been beaten down badly in the last few months, the upside can be decent. The volume backing today’s move was also astonishingly high, with a total of 3 million shares exchanging hands so far, which is 828% higher than the 10-day average volume of 323K shares. Any breakout when supported with high volume expansion is generally considered to be a reliable one.

During this downtrend, the stock fell to a low of INR 409, therefore a stop loss above it for long positions might not be a viable one. There is a resistance around INR 455 which could be deemed as the target and crossing above the same might further extend the rally to INR 470.

In case you want to connect with me, reach out on X (formerly, Twitter). My handle is - aayushxkhanna

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  • dilip girhe @dilip girhe
    hdfc and jio financial long term best shares or not
    Like 1
  • Jala Venkatesh @Jala Venkatesh
    please provide trend reversal breakout stocks scanner it will help our community
    Like 3
    • Aayush Khanna @Aayush Khanna
      I use InvestingPro+ for that. You can use it too.
      Like 0

      • Comment Guidelines

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  • Vishwas Ketkar @Vishwas Ketkar
    very nice 👍
    Like 2
  • Arvind Jat @Arvind Jat
    Breakout stock selection excellent guru
    Like 5
    • Aayush Khanna @Aayush Khanna
      Thanks, Arvind.
      Like 1

      • Comment Guidelines

      We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

      • Enrich the conversation
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      • Avoid profanity, slander or personal attacks directed at an author or another user.
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  • Shripad Sumant @Shripad Sumant
    yes for sure, with caution we can expect 450 level. Thanks
    Like 0
  • sudeepta layek @sudeepta layek
    Thank you
    Like 0
  • namami ghosh @namami ghosh
    learn a lot from your inputs... thank you 🙏
    Like 2
    • Aayush Khanna @Aayush Khanna
      Thanks, Namami.
      Like 1
    • chatar singh @chatar singh
      Missed your webinar!
      Like 0

      • Comment Guidelines

      We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

      • Enrich the conversation
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