In my post date 06-May-2020, I have suggested to go for SHORT on NSE:TATAPOWER (for short term gain). On 06-May, it was closed on Rs. 29 and I have suggested TARGET of near Rs. 27, which it almost achieved today (11-May-2020).
Now it touched the support line of monthly parallel channel as marked in chart. So what next?
Will it take take trend reversal or continue to fall!?. What could be Target price in both case?? If you want to know, please comment, will analyse further and post an update.
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What next?
Please see below chart:
I have analysed many previous retracement after major/ minor falls, and found that MAXIMUM retracement is up-to 61.8% level.
So as per above chart, if we consider this as MINOR DROP (of a bigger fall, yet to occurs), then retrace level is nearly Rs. 33.50, from there it can AGAIN fall down and will drop below 27 also. HENCE RESISTANCE is 33.50 and 37.50. if price break this then it may be consider as Retracement#2
BUT, if consider this rectracement of DROP#2 (which is also a bigger fall), then resistance can be nearly 48.65 and breaking this will have upward move.
As per Price Action Support & Resistance levels, Rs. 31.10 is seems to a major resistance level. Hence this also to be watched.
So, next resistance are: 31.10, 33.50, 37.50. Breaking these will leads to more upward movements.
At same time, if price crash below 29.50 (and sustained), then it may fall downwards....and break 27....
Note: All break means break & sustained for adequate numbers of candles in different time-frame.
Note-2: This may and may not comes true, so please trade as per your analysis and risk taking capacity.
Great Sir. You are almost hitting the nail like in HUL case. I purchased it at Rs. 29 in hope to get good return. But now sitting on loss. Please suggest the further movement of price.