Description
⋅ Tata Motors
Observations
- Last year on 31-May-2016 the stock opened with a significant gap up & closed at 459 up 38 points from its previous day close of 421
- This year On 8-Aug-2017, the stock opened significantly lower and closed at 380 down 36 points from its previous day close of 416
- the gaps have occurred from similar levels 421 and 416 respectively and of similar magnitudes on a closing basis (38 & 36 points respectively)
- thereby forming an island of trade of more than 1 year
Scenario 1
The stock goes up... sees price rejection and falls down
Scenario 2
Stock gets sold in to and falls deeper
Strategy 1
Buy at current levels for target of 405-415
If the stock sees price rejection around the 416-422 zone then sell for downside target of 344-348 and probably even 322
Strategy 2
The stock goes below 374 and is unable to recover above 384 then sell with minor stop of 384 for target of 344-348
- wait for a bounce back. if we see price rejection again in the zone of 362-380, then sell for deeper targets
Take care & safe trading...!!!
Comment
⋅ As per Strategy 1
Tata Motors has achieved it's upside target
Book profits in Long position and if we see price rejection in this zone we look forward to sell
Take care
Happy & safe trading...!!!
Trade active
⋅ Tata Motors makes a high of 413 so far....
Trade is active on the short side
Take care & safe trading