Seems like TATASTEEL might be ending flat correction which started from 1530 levels taking price all the way down till 1060.A bounce in the form of wave X can give good swing trade.
Reason behind end of current flat correction.
1)Price reaching near 123% wave A extention in wave C fall
2)Price reaching 100% equality wave 1 target in wave 5 of wave C.
3)Price reaching wave 4 low's of higher degree(1050)
4)Morning star formation on daily chart.
5)Positive Divergence between wave 3 and wave 5 low's.
6)22 day cycle period low is due on 31st jan,indicating time will be favouring bulls.
As we can clearly see tatasteel forming an important pivot low at 1061,one can initiate long at CMP of 1110 with 1060 as initial stop-loss for an eventual target of 1240 giving us a risk reward of 1:2.
Disclaimer:THis are just my views on the stock,no position should be build or exited on its basis.posting this just for my future reference.
Reason behind end of current flat correction.
1)Price reaching near 123% wave A extention in wave C fall
2)Price reaching 100% equality wave 1 target in wave 5 of wave C.
3)Price reaching wave 4 low's of higher degree(1050)
4)Morning star formation on daily chart.
5)Positive Divergence between wave 3 and wave 5 low's.
6)22 day cycle period low is due on 31st jan,indicating time will be favouring bulls.
As we can clearly see tatasteel forming an important pivot low at 1061,one can initiate long at CMP of 1110 with 1060 as initial stop-loss for an eventual target of 1240 giving us a risk reward of 1:2.
Disclaimer:THis are just my views on the stock,no position should be build or exited on its basis.posting this just for my future reference.
Comment:
so far it seems like morning star pattern has failed as we have not seen follow through buying
Trade closed: target reached