In my last post on Tatamotors, I mentioned that Tatamotors moving into strong resistance area at around 410-418 and indeed it did. It reversed exactly from 431 to move all along to 265.8 level. That means if anybody would have shorted at around 396 could easily have made 396-324 = 72 points (Rs) on each lot where the lot size for Tatamotors is 1500. So a cool profit of Rs 1,08,000/- per lot. Isn't it yummy? Now why 396 and 324? 396 because at that point it moved down very rapidly and broke below an important pivot at 396. See in the chart below in the triangle area there was some consolidation and when it broke out of the triangle and failed almost immediately and moved below 396 that’s our shorting area.
Now why 324? This is because there it move past an important pivot high and support turned resistance line and also trend line resistance as well. Pls find below the chart.
Now to successfully trade this you need to have trading discipline and a trading system or method on which you can rely. Trading discipline is required as there may be some 1 or 2 times when you will get whipsaws and have to leave with a small stop loss and that is normal. For different instrument I have different stop loss values. As I trade mostly bank nifty and Nifty futures I use stop loss as 50 and 20 points respectively and that I have using for years and with great success. Similarly for stocks I have different stop loss values for different instrument viz for Tatamotors I use just 2 points or Rs stop loss, for Maruti, I use 20 points stop loss et al.
Now let's analyze what's there in the Tatamotors store for us for this week.
Mammoth move up so far in Tatamotors. I am feeling lucky as I am able to ride both the down move as well as the up move so far. I reversed but short to long at 324 and riding till now.
Now looking at the trading chart I can see a resistance at approx. 416-431 and if we can move past it, viola the target could easily be 570-601 zone.
If you like this post do share it and leave your comment. Any question related to the topic? Feel free to ask.
Trade safe and keep checking this space for any further updates on developing resistances in between. Also check out our other publications on Nifty, Bank-nifty and other stock specific at the left hand column. You can also visit my masters (Ilango) blog for daily updates on Nifty. Happy Trading. As my mater says, Get Rich Slowly and Quietly. Cheers!!
Now why 324? This is because there it move past an important pivot high and support turned resistance line and also trend line resistance as well. Pls find below the chart.
Now to successfully trade this you need to have trading discipline and a trading system or method on which you can rely. Trading discipline is required as there may be some 1 or 2 times when you will get whipsaws and have to leave with a small stop loss and that is normal. For different instrument I have different stop loss values. As I trade mostly bank nifty and Nifty futures I use stop loss as 50 and 20 points respectively and that I have using for years and with great success. Similarly for stocks I have different stop loss values for different instrument viz for Tatamotors I use just 2 points or Rs stop loss, for Maruti, I use 20 points stop loss et al.
Now let's analyze what's there in the Tatamotors store for us for this week.
Mammoth move up so far in Tatamotors. I am feeling lucky as I am able to ride both the down move as well as the up move so far. I reversed but short to long at 324 and riding till now.
Now looking at the trading chart I can see a resistance at approx. 416-431 and if we can move past it, viola the target could easily be 570-601 zone.
If you like this post do share it and leave your comment. Any question related to the topic? Feel free to ask.
Trade safe and keep checking this space for any further updates on developing resistances in between. Also check out our other publications on Nifty, Bank-nifty and other stock specific at the left hand column. You can also visit my masters (Ilango) blog for daily updates on Nifty. Happy Trading. As my mater says, Get Rich Slowly and Quietly. Cheers!!
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