Break-out followed by wave 2 pullback.Tatasteel has completed complex corrective pattern on higher degree when it went past 124 wave X peak managed to close above it.As can be seen stock is making higher highs and higher lows since the completion of wave y of WXY correction on intermediate degree.
Post break-out we are seeing a pullback in the form of wave 2 which is taking support at the same 124 odd levels.We also have 38% retracement of the impulse wave 1 on minor degree at 124.
Going forward a close above 131 will confirm the end of wave 2 on minor degree and start of wave 3 impulse on minor degree.Fib target for wave 3(161% extention) is coming at 170,however 100% extention is coming at 151.
One can initiate long above 131 for target of 152-172 with a stop-loss of 122.
Disclaimer:This analysis is for my future reference.No position should be solely on its basis.
