Long swing trade analysis for TATACONSUM

Oct 6, 2021

TATACONSUM
Analysis

• The stock can be seen to respect the parallel channel pattern since March 2021
  
• As per hiken ashi chart a strong green candle was formed today indicating a trend reversal.
  
• 50DMA is being tested now and could give an opportunity if broken
  
• FMCG index had shown a reversal similar to the one for this stock
  

Target
Could aim the previous high as the target for the trade or the parallel channel could also be aimed for target.

Stop Loss
Previous high level has acted as a support for the last three days. That can be considered as stop loss which is also the bottom line of the parallel channel.

Risks and Reward Analysis
The trade shows a risk reward ratio of 2.2 which seems pretty good.

This is not a trading advice. The analysis is for educational purposes only. I am not a SEBI Registered Advisory and should not be held responsible for any financial losses incurred in trades. Use this information for educational purposes only. Stock market investments are subject to market risks so kindly do your own research before investing or trading.