Bullish Possibilities:
Last week we mentioned that,
As always we start with Bullish Possibilities. though in ST I do not see any bullish possibilities. As mentioned in my earlier post on tatamotors, Tata Motors has a resistance at around 416-431 so until unless it move past this resistance zone no bullish possibilities exist.
....
So next week is trend deciding week for tatamotors. If this open lower and trade lower then quite possible that this will visit 393-400 in short term
Unquote:
As can be seen from the hourly chart tatamotors has broken down the rising trend channel and has found support at 380 which was earlier resistance zone. After the straight fall from 421 to 380 this has bounced almost 50% of Fibonacci retracement and currently dealing with 400 level by closing at 398.7 odd levels. 400 was earlier support and hence expected to be a resistance now for this stock. If able to move past 400 could find 416 as the next resistance level. Breakout above 416 will trigger the ultimate target at around 600 because of the W pattern mentioned in my previous post.
Bearish Possibilities:
As can be seen from the above Tatamotors Weekly Chart, last week candle has fallen below the rising trend channel which is bearish and can target 368-360 in medium term. Though in short term this can be extremely turbulent because of consolidation as discussed earlier.
Summary:
1) Till tatamotors is below 416-431 and above 360-368 it is purely in consolidation zone for positional traders.
2) Below 360-368 it is only sell.
3) Above 416-431 it is only buy.
4) In consolidation buy the dips and sell the tops.
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 master says, Get Rich Slowly and Quietly. Cheers!!
Last week we mentioned that,
Quote
As always we start with Bullish Possibilities. though in ST I do not see any bullish possibilities. As mentioned in my earlier post on tatamotors, Tata Motors has a resistance at around 416-431 so until unless it move past this resistance zone no bullish possibilities exist.
....
So next week is trend deciding week for tatamotors. If this open lower and trade lower then quite possible that this will visit 393-400 in short term
Unquote:
So tatamotors obliged we short traders by providing some quick money and visited till 380.1 odd levels but bounced back nicely on last two days to close at 398.7. The bounce is quite obvious as we mentioned in my last post (summary) that it is in purely consolidation zone currently hence such a bounce is quite natural. Now let's analyze what this stock has in it's store for this week.
 |
| Tatamotors Hourly chart |
As can be seen from the hourly chart tatamotors has broken down the rising trend channel and has found support at 380 which was earlier resistance zone. After the straight fall from 421 to 380 this has bounced almost 50% of Fibonacci retracement and currently dealing with 400 level by closing at 398.7 odd levels. 400 was earlier support and hence expected to be a resistance now for this stock. If able to move past 400 could find 416 as the next resistance level. Breakout above 416 will trigger the ultimate target at around 600 because of the W pattern mentioned in my previous post.
Bearish Possibilities:
 |
| Tatamotors Weekly Chart |
As can be seen from the above Tatamotors Weekly Chart, last week candle has fallen below the rising trend channel which is bearish and can target 368-360 in medium term. Though in short term this can be extremely turbulent because of consolidation as discussed earlier.
Summary:
1) Till tatamotors is below 416-431 and above 360-368 it is purely in consolidation zone for positional traders.
2) Below 360-368 it is only sell.
3) Above 416-431 it is only buy.
4) In consolidation buy the dips and sell the tops.
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 master says, Get Rich Slowly and Quietly. Cheers!!
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