Break-out followed by wave 2 pullback.

Oct 16, 2023

Tatasteel has completed complex corrective pattern on higher degree when it went past 124 wave X peak managed to close above it.As can be seen stock is making higher highs and higher lows since the completion of wave y of WXY correction on intermediate degree.

Post break-out we are seeing a pullback in the form of wave 2 which is taking support at the same 124 odd levels.We also have 38% retracement of the impulse wave 1 on minor degree at 124.

Going forward a close above 131 will confirm the end of wave 2 on minor degree and start of wave 3 impulse on minor degree.Fib target for wave 3(161% extention) is coming at 170,however 100% extention is coming at 151.

One can initiate long above 131 for target of 152-172 with a stop-loss of 122.

Disclaimer:This analysis is for my future reference.No position should be solely on its basis.

Nov 16, 2023

Note

So we are done with the wave 2 correction as prices retraced 61.8% of wave 1 move and reversed.So far we have got first confirmation of wave 2 end as prices breached 0-B trendline on minor degree.One can get long at current level of 124.50(50% funds) with a stop-loss of 114 on the downside,once we see price breaking above 129 pivot high rest of the funds should be deployed.Target as shown would be 143 and 161.