TATA Chemicals has been in a prolonged period of consolidation, trading within a well-defined range since August 2021. The stock has made several attempts to break out of this zone but has so far been unsuccessful.
The Key Battleground: A Major Resistance Level 🚧
The primary hurdle for the stock is a long-term horizontal resistance line that has been in effect since January 2022. This level has been repeatedly tested, and each breakout attempt has failed, confirming it as a significant barrier.
Conflicting Technical Signals 📊
The technical indicators across different timeframes present a mixed picture:
- Weekly Chart: Short-term Exponential Moving Averages (EMAs) are in a positive crossover state, suggesting building upward momentum. However, a confirming SMA Golden Crossover has not yet occurred.
- Monthly Chart: On the higher timeframe, a long-term SMA Golden Crossover remains active, providing a bullish backdrop for the bigger picture.
Future Outlook and Potential Scenarios
- Bullish Case 📈: A decisive breakout above the resistance zone, supported by high volume, would be a strong bullish signal. If this upward momentum is sustained, the stock could rally towards the ₹1,158 level.
- Bearish Case 📉: If the stock fails to breach the resistance again, it is likely to fall back towards the lower end of its trading range, with a potential downside target near the ₹792 support level.
Let's watchout for next week's price-action
The Key Battleground: A Major Resistance Level 🚧
The primary hurdle for the stock is a long-term horizontal resistance line that has been in effect since January 2022. This level has been repeatedly tested, and each breakout attempt has failed, confirming it as a significant barrier.
Conflicting Technical Signals 📊
The technical indicators across different timeframes present a mixed picture:
- Weekly Chart: Short-term Exponential Moving Averages (EMAs) are in a positive crossover state, suggesting building upward momentum. However, a confirming SMA Golden Crossover has not yet occurred.
- Monthly Chart: On the higher timeframe, a long-term SMA Golden Crossover remains active, providing a bullish backdrop for the bigger picture.
Future Outlook and Potential Scenarios
- Bullish Case 📈: A decisive breakout above the resistance zone, supported by high volume, would be a strong bullish signal. If this upward momentum is sustained, the stock could rally towards the ₹1,158 level.
- Bearish Case 📉: If the stock fails to breach the resistance again, it is likely to fall back towards the lower end of its trading range, with a potential downside target near the ₹792 support level.
Let's watchout for next week's price-action
Disclaimer: This analysis is my personal view & for educational purposes only. They shall not be construed as trade or investment advice. Before making any financial decision, it is imperative that you consult with a qualified financial professional.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer: This analysis is my personal view & for educational purposes only. They shall not be construed as trade or investment advice. Before making any financial decision, it is imperative that you consult with a qualified financial professional.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.