TataMotors- Trapped in motors from 500 zones-Line in sand@502

From close to 600 mark- Motors fell in a choppy manner till 428 & retraced back 70-80% of the fall till 550's. From 550's the fall was extreme impulsive & likely could have trapped anyone seems to be part of the larger correction & currently in the middle having the possibility of extending even further down in the days to come.

In the current situation, having a line in the sand at 502- in future there could be a selling opportunity back keeping in mind 502 should not be taken out to the upside-which is a far away situation & mentioned below are trading strategies can be utilized for opportunities in the coming session.

Trading Strategy
Scenario-1---- Going above 467 can push up to 480-485 on the upside.

Scenario-2---- Can look for a buying opportunity in the zone 440-445 if holds & moves above 455 as confirmation.

Scenario-3---- If we get the opportunity to see motors in the zone 480-490 -keeping 502 as resistance or line in the sand, we shall look for a downside target of 430-440 if confirmed for selling in the zone 480-490's.

Trade active: 09:43 Hrs 2nd March2017

Last Price@465

Day High@467

Scenario 2 is in play- went close to 440-445 -made a low@448 -Opened gap up at 455-456 today@2nd March2017 & rushed upside likely heading for 480-490 zone as expected.
Trade active: 09:50 Hrs 2nd March2017

Last Price@463

Now immediate hurdle is 467 moving above -case -1 activates as suggested in the trading strategy post above.

Trade active: 17:23 Hrs 6th March2017

Last Price@470.25

Day High@472

TM popped up above 467 as expected -a small upside move started, let us see it travels close to 478-480 zone first.

Trade active: 09:20 Hrs 7th March2017

Last Price@468.50

It is doing corrective sequence & shall be good only above 470 if holds so do not take risk in holding TM below 470.
Comment: 10:19 Hrs 7th March2017

Last Price@474

TataMotors speeding like a rocket on short term -crossed 470
Trade active: 17:43 Hrs 7th March2017

Last Price@466

Day High@476

Travelled close to 478-480 band but now it can become tricky here & we surely don't want 448 lows to be broken so keeping that intact or support we will look for an upside move between 475-480.
Remember this is a counter trend move & they are tricky at times -medium term trend is still down, which can take below 434 lows but not immediately.

Trade closed: target reached: 13:13 Hrs 16th March2017

Last Price@478.80

Crying for several days -it touched the objective of 480-485 as mentioned in scenario-1 & also above keeping 448 intact downside.

I also said it is tough trading this part because it is a counter trend move-- move against the trend & trend is down.
Trade active: 11:34 Hrs 17th March2017

Last Price@477

TM is slowly slipping down as suggested in scenario-3. One should keep TM in watchlist.
Trade active: 11:41 Hrs 17th March2017

Last Price@476.55

One should look for a bounce to sell in the zone 480-482 with stops above 485- Target is open downside.
Trade active: 14:09 Hrs 17th March2017

Last Price@473.80

Above 475 -we are expecting a bounce for the zone 480-482 as the possible zone to take sell with strict stops above 485. Here we want TM to come in the zone 480-482 & start falling below 475 for safe traders to take short or sell position. Stops should be 485 & above.
Trade active: 16:35 Hrs 17th March2017

Last Price@476

Above 475 it made intraday ending session bounce to 478 - 3 points intraday is more than enough as a scalper.

Trade closed: target reached: 16:37 Hrs 17th March2017

Last price@476

Target Reached on upside zone 480-485 expected 16 days back & dropped as well - solid.

Coming up with latest update.

Best Regards,
Abhishek H. Singh, CMT
​Growth Director - TradingView India

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