Tata Steel Ltd The chart exhibits a Cup and Handle pattern on Tata Steel’s daily timeframe.
1. Pattern structure:
Cup: Formed from Nov to early Jan, with a rounded decline and recovery, creating the “U” shape.
Handle: A tighter consolidation from mid‑Jan to Feb, retracing ~10–15% of the cup’s advance, which is typical for a healthy handle.
2. Breakout:
The price has pierced the handle’s resistance (≈₹178) with decent volume (26 M shares), confirming the bullish signal.
The breakout candle is relatively strong, suggesting momentum behind the move.
3. Volume analysis:
Volume spikes during the cup’s formation and at the breakout, indicating institutional interest.
Handle volume is lower, showing reduced selling pressure and consolidation.
4. Target calculation:
Measured move: The depth of the cup (≈₹26.05) is projected upward from the breakout point, giving a target of ₹212 (13.93% upside).
Intermediate target: +₹9.32 (4.99%) to ₹197, often hit first in a gradual climb.
5. Support & resistance:
Immediate support now lies at the handle’s base (≈₹168–172).
Strong resistance is the previous high near ₹212.
6. Trading considerations:
Entry: Confirm close above ₹178 with volume > average; enter long.
Stop‑loss: Place below the handle’s low (≈₹168) to limit risk.
Position sizing: Allocate based on risk tolerance and the ~13% target upside.
