TATA MOTORS LTDLong
TATAMOTORS - Eying for a pullback to 860-900 levels?
Updated
Please note that we are looking at a meaning pullback only and not a trend reversal. Since this is 4th wave on larger degree and fell one way down, expecting complex correction pattern to play out on this counter over the next few weeks.
CMP: 783
TF: Daily
The impulse move from 63.5 has been halted at 1179 to complete the 3rd wave so far.
Stock has retraced the expected retracement level of 50% for the 4th wave (intermediate degree). Although it has room to go to 500 levels for the retracement, the ideal/expected pullback is 38% to 50% in most of the cases.
Price has been falling one way from 1179 in a staggered manner and slow grinding, and the structure is LL-LH.
We could either consider this pullback as ABC three wave down or 1-2-3-4-5 wave impulse.
In either case, the third wave down (C or 3) has extended much without any meaningful pullback.
I am expecting the price to test 900-920 levels before deciding the next trend.
Reason for the bounce?
MACD gave crossover signal, and am hoping for a pullback to 0 line.
Price went sideways and also negated LH-LL structure on Hourly TF.. if we dont break the lows, we have a good chance of a meaningful pullback
Why 900-920?
It is the 38% retracement level of the move from 11142 to 760
Anchored VWAP from 1142 is placed at 920
200 DMA is at 910
Cloud Bottom is at 910 (Daily)
On the way up, 850 could also pose a strong resistance (Super Trend, Cloud Base Line and 40 DEMA)
What if it falls further?
AVWAP from the recent swing low of 375 levels is placed at 747. I hope that could offer/stand a good support on the downside.
Closing below 770 on Daily TF will trigger the move towards next Fib level at 677
I am not a SEBI registered Analyst. Views are personal and for educational purpose only. Please consult your Financial Advisor for any investment decisions.
CMP: 783
TF: Daily
The impulse move from 63.5 has been halted at 1179 to complete the 3rd wave so far.
Stock has retraced the expected retracement level of 50% for the 4th wave (intermediate degree). Although it has room to go to 500 levels for the retracement, the ideal/expected pullback is 38% to 50% in most of the cases.
Price has been falling one way from 1179 in a staggered manner and slow grinding, and the structure is LL-LH.
We could either consider this pullback as ABC three wave down or 1-2-3-4-5 wave impulse.
In either case, the third wave down (C or 3) has extended much without any meaningful pullback.
I am expecting the price to test 900-920 levels before deciding the next trend.
Reason for the bounce?
MACD gave crossover signal, and am hoping for a pullback to 0 line.
Price went sideways and also negated LH-LL structure on Hourly TF.. if we dont break the lows, we have a good chance of a meaningful pullback
Why 900-920?
It is the 38% retracement level of the move from 11142 to 760
Anchored VWAP from 1142 is placed at 920
200 DMA is at 910
Cloud Bottom is at 910 (Daily)
On the way up, 850 could also pose a strong resistance (Super Trend, Cloud Base Line and 40 DEMA)
What if it falls further?
AVWAP from the recent swing low of 375 levels is placed at 747. I hope that could offer/stand a good support on the downside.
Closing below 770 on Daily TF will trigger the move towards next Fib level at 677
I am not a SEBI registered Analyst. Views are personal and for educational purpose only. Please consult your Financial Advisor for any investment decisions.
Trade active
Price is moving on expected lines.. Much more to go
I am not a SEBI Registered Analyst. Views are personal and for Education purpose only. Please consult your Financial Analyst before making investment decision
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