TATA STEEL HITTING THE LONG TERM RESISTANCE

Aug 15, 2020

Trade with caution in Tata Steel. Tata Steel is trading with a Bullish Bias in short therm but at current levels it is trading just below its long term resistance. You can see in the weekly chart, i have drawn a trend line connecting swing high's of 2018 and 2020. In last 3 years Tata Steel have never violated this trend line. Today, Tata Steel is trading near this resistance line. We can see that it has once touched the resistance line and seen some pullback. One should book long position for now or keep a strict trailing stop loss in case we see a reversal in Tata Steel. One can re-initiate long position for long term once the stock crosses the Resistance line.Once the trend line is crossed, the resistance will become support. I will initiate long position for long term once this trend line is crossed with my stop loss at 3% below the trend line.