TATA STEEL LTDLong
TATASTEEL - (BREAKOUT AND RETEST)
Updated
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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