Cup and Handle pattern formation on Tatamotors and it will break the level on upside but if broken on downside please consider as false breakout. There is no two way trade by this pattern. Keep your stop loss on given level.
Buy above - 462.50
Target 1 - 473.50
Stop loss - 456.50
Since my last post reflected a long term bearish bias on the stock (See >> ), that doesn't mean we shall not take intermediate and short term up moves.
In the short to medium term the stock may tend to touch the resistance area before showing any signs of weakness.
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If you go n check on larger time frame TaMo is on very good support & with Bullish Bat patter completion around the support zone. So, its ideal for us to expect a move towards 450's zone.
But if you notice keenly, risk-reward will be skewed on this particular setup as we had gapup open today in Tata motors, so if you wanna tackle that comfortably Go down on 1 hr...
As per fibonacci analysis,
Tata Motors is still trading in the green box which is a bullish signal.
It has consistently retraced from 0.5 fibonacci ratio.
Expect a strong upmove towards 460 levels where it will get a resistance from the confluence line .
Keep a strict stoploss of 425.
Any closing below 425 will take the stock further down by atleast 5%
Same as Ambuja cements yesterday, Tamo was on bearish side that's the only difference here, resistance at 61.8%, on bearish confirmation depending on your risk , You can take shorts in Tamo. This week, I don't even know what to write in description :P
Tata Motors has a strong support around 442 in both weekly and monthly charts. Any dips can be bought with a weekly closing basis SL of 442, for a target of 510-519. Daily close above 469-470 will confirm the uptrend.
By Looking at the activity while Gap filling, it seems large Institutions are accumulating and are in control to push the limits of TATAMOTORS. Target 1 can be achieved the during the next session and the Target 2 Can be achieved the 2nd Day. Index Direction May influence the Direction of the trade, So Place the trade Looking at the overall market conditions!
On 5th May TATAMOTORS broke previous support level of 430 with strong bearish candle. Next support level is @ 403. Will it break that level as well? Only time will tell. Opening hour on 8th May will be crucial.
Stock price is Trading at long term support of 200 WMA placed around 430.
Stochastic and RSI are Plotted around the oversold zone on the weekly charts
Weekly ADX indicator has turned bullish
One can buy the stock between CMP and 430, for a target of 520, and place stop loss at 420 on closing basis.