On 5th Sept we discussed 2 possible scenarios for Tata Motors that we are looking at...
1st was Tata Motors holding 374 on the downside and jumping towards 405-416 levels
The stock made a low of 374.05 precisely and has managed to crawl back above 405 levels...
Now if we see Tata Motors share price getting rejected here... then we are starring at the...
Tata Motors
Observations
- Last year on 31-May-2016 the stock opened with a significant gap up & closed at 459 up 38 points from its previous day close of 421
- This year On 8-Aug-2017, the stock opened significantly lower and closed at 380 down 36 points from its previous day close of 416
- the gaps have occurred from similar levels 421 and 416 respectively...
Before the results kick in, the trade looks very lucrative from a risk rewards perspective. Its bang on support and if 420 holds, the scrip could witness a bounce in the near term to around 450 and then to 485. Stop loss of 420 (Daily) would negate the trade and infact it will stop and reverse trade !!!
Expecting a falling wedge breakout in TATAMOTORS very soon. Risk takers can buy between 425 to 420 with stop-loss of 416 on closing basis for target of 598.40 and above. Others please wait for confirmation of break-out.
Yesterday's afternoon session was good consolidation and on range break in Tamo, we will get good downside move. The trade setup gets invalidated if price crosses above the resistance zone 443's convincingly but we will be watching for reversal around the resistance zone for downside movement. Both ways are mentioned on chart, if all goes as planned we will be...
Descending Triangle on TATAMTRDVR and the pattern will get successful only when the price breakout on downside otherwise consider as false breakout.
Trade:
Short - 258
Target - 238
Stop loss - 270
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.
Trade:
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.
Hit like for better analysis in future. Comments are welcomed.
Trade safe.
Best Regards...
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%
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...
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
