buy tata steel at current levels of Rs. 115-118
The logic behind the trade:
• tata steel was forming a triangle pattern which is visible in the chart attached below. the structure started to form in mid-august of 2021. (Reason - increase in coal price and increase in taxes)
• Since then, the stock formed lower highs and lower lows (bearish trend) on a higher time frame which is weekly.
• In the previous week the stock broke out from the resistance levels provided by the triangle pattern and retested them this week (note - now the resistance levels will act as support levels).
• Volumes were also higher the previous week as compared to this week.
• Also, the coal prices are decreasing now, and the taxes were also removed a while ago which will ultimately result in a margin growth that will go in hand with increasing demand.
The logic behind the trade:
• tata steel was forming a triangle pattern which is visible in the chart attached below. the structure started to form in mid-august of 2021. (Reason - increase in coal price and increase in taxes)
• Since then, the stock formed lower highs and lower lows (bearish trend) on a higher time frame which is weekly.
• In the previous week the stock broke out from the resistance levels provided by the triangle pattern and retested them this week (note - now the resistance levels will act as support levels).
• Volumes were also higher the previous week as compared to this week.
• Also, the coal prices are decreasing now, and the taxes were also removed a while ago which will ultimately result in a margin growth that will go in hand with increasing demand.
Note
Target 1 reached
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.