TATA MOTORSTata Motors is one of my favourites NIFTY 50 stocks. Presently there are two possibilities for TATA MOTORS and both the possibilities are described below.
Possibility 1 (Bullish Possibility):
TATA MOTORS is possibly forming a "double bottom" pattern (which is a bullish pattern). The 498.6 level is acting as strong resistance and TATA MOTORS is not able to break that level. If TATA MOTORS give a breakout and closes above that level then it will confirm the "double bottom pattern" and an initial target of 554 (10% after breaking the 498 level) can be reached.
Possibility 2 (Bearish Possibility):
On daily charts, it looks like TATA MOTORS also might be forming a simultaneously bearish "Flag and Pole pattern". On 29th NOV, TATA MOTORS started its upward trend and after forming the flag and taking resistance around 498 levels it retracted back to the same support from where it started the uptrend ( near 446 levels). TATA MOTORS has already re-tested its 498 levels and failed to give a breakout. On the positive side, it is taking support from the downward channel.
POINTS TO NOTE:
1. Strong resistance around 498 levels and strong support near 446 levels.
2. Daily RSI is showing neutral divergence against the price.
3. On MACD, the MACD line has given a crossover above the zero line and is hovering above the signal line which is a bullish sign.
MY VIEWS
It is a bit complicated view for now as we have to wait for a few sessions before a directional clarity. If TATA MOTORS breaks and closes above 498 levels then it will give confirmation of "double bottom pattern". On the flip side if it breaks the downward channel then again it might visit its strong support around 446 levels. The daily MACD is showing bullish signs but we have to wait till the direction on either side gets clear.
THOSE ARE MY VIEWS AND ARE ONLY FOR KNOWLEDGE PURPOSES ONLY. PLEASE ACT WISELY.
