HWHG trade ideas
RSI and RSI Divergence Part 2RSI (Relative Strength Index) is a momentum indicator that measures recent price changes to assess if an asset is overbought or oversold. RSI divergence occurs when the price of an asset and its RSI move in opposite directions, potentially indicating a trend reversal or weakening trend. There are two main types: bullish divergence (price makes lower lows while RSI makes higher lows) and bearish divergence (price makes higher highs while RSI makes lower highs).
Tata Steel : Too much volatility due to Tariff news !Tata Steel Share prices is reacting sharply to every tariff-related headline lately.
📉 Downside?
It’s bouncing off its 200W-EMA, with strong support at ₹115–122 — and ₹100–105 below that.
⚠️ BUT one negative tariff update… and we could see sub-₹100 levels.
📈 Upside?
Faces resistance at ₹142–146, followed by ₹155–160 & then ₹165–170. So, short-term upside looks capped.
🔍 Valuation Check:
PE is ~58 😬 (vs 5-year avg of 17),
ROCE ~7% — nearly half of its peers.
📌 Bottom Line:
Too much noise + weak fundamentals = Best to stay away until tariff clarity emerges.
#TataSteel #StockMarket #Tariffs #Investing #NiftyMetals #TradingAlert #StockMarket #bharatelectronics #Investing #MarketUpdate #Stocks #stoxsense #learntradingwithsudhir
Breakout Alert: Tata Steel and Mazagon Dock Power Up for a Surge◉ Tata Steel NSE:TATASTEEL
● The stock price has recently broken out of a falling broadening wedge pattern, signaling a potential upward movement.
● With the government's plans to impose taxes on steel imports, the stock could experience a rally in the near future.
◉ Mazagon Dock NSE:MAZDOCK
● The price has formed a bullish Pole & Flag pattern on the chart.
● Following a fresh breakout, the stock is expected to continue its upward trajectory.
Tata Steel - Swing TradeNSE:TATASTEEL today looked good technically on the back of China announcing that it would restructure its steel industry to cut its total output. The latest move by China is expected to reduce the dumping of cheap steel into the Indian market, which would act as a major positive for domestic steel companies.
About:
NSE:TATASTEEL is Asia's first integrated private steel company set up in 1907. The company has a presence across the entire value chain of steel manufacturing from mining and processing iron ore and coal to producing and distributing finished products. The company has a target to increase domestic steelmaking capacity to 30 MnTPA by 2025.
Trade Steup:
It Made Good Short Term Base on Daily Charts and Taking Support of 50 DSMA and MACD Trending Upwards Now Looking Good for a Swing Trade.
F&O Activity:
Long Buildup Seen in Futures With 140 PE Gaining Significant OI Addition.
Target (Take Profit):
Around 158 for Positional Trader and 200 DSMA for Swing Trader
Stop Loss:
Entry Candle Low for Swing Trader and 50 DSMA for Positional Trader.
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Disclaimer: "I am not SEBI REGISTERED RESEARCH ANALYST AND INVESTMENT ADVISER."
This analysis is intended solely for informational and educational purposes only and should not be interpreted as financial advice. It is advisable to consult a qualified financial advisor or conduct thorough research before making investment decisions.
Tata Steel Potential Breakout Candidate.📈 Tata Steel - Trading Plan
🎯 Trade Setup:
🔹 Entry: ₹159 (Preferably on a daily closing basis)
🔹 Stop Loss (SL): ₹145 (Daily closing basis) (-8.81%)
🔹 Target 1: ₹184 (+15.72%)
🔹 Risk-to-Reward (R:R): 1:1.78
📊 Why This Stock?
✅ Above 50 DMA & Consolidating Above 200 DMA – Signs of strength after prolonged weakness.
✅ Gap Up & Trading Near Resistance – Potential breakout opportunity if volume supports.
✅ Metal Index Breakout – Recently broke out of a base, trading just below 200 DMA.
✅ Weekly Candles Showing Strength – Wide-range candles indicate demand.
✅ Improving RSI – Momentum gaining strength.
⚠️ Risks to Consider
❌ Overall Trend Still Bearish – Market structure remains Lower Highs, Lower Lows.
❌ Metal Index Below 200 DMA – A strong close above it adds more conviction.
❌ Volume Needs Improvement – A breakout without volume can be weak.
📌 Safe Trading Approach
🔹 Ultra Safe Traders: Wait for a weekly close above ₹159.
🔹 Confirmation Traders: Enter only after Metal Index closes above 200 DMA with volume.
🔹 Breakout Traders: Ensure a clean breakout with strong volume before entry.
📢 Disclaimer: This is not a trade recommendation. Please do your own due diligence and manage your risk accordingly. 🚀
divergence secrets of RSI# **Divergence Secrets of RSI**
RSI divergence helps traders identify **hidden market momentum shifts** before price movements occur, making it a powerful tool for **reversals and trend continuations**.
## **1️⃣ Types of RSI Divergence**
✅ **Regular Divergence (Reversal Signal):**
🔹 **Bullish:** Price ↓, RSI ↑ → **Trend reversal upward**.
🔹 **Bearish:** Price ↑, RSI ↓ → **Trend reversal downward**.
✅ **Hidden Divergence (Trend Continuation):**
🔹 **Bullish:** Price ↑, RSI ↓ → **Trend continuation up**.
🔹 **Bearish:** Price ↓, RSI ↑ → **Trend continuation down**.
## **2️⃣ Advanced RSI Divergence Trading**
✅ **Multi-Timeframe Analysis:** Stronger signals when confirmed across different timeframes.
✅ **Volume Confirmation:** Divergence + high volume = stronger trade setups.
✅ **Support & Resistance Zones:** Combine RSI divergence with key levels for precise entries.
### **Conclusion**
RSI divergence is a **highly effective strategy** for spotting early trend reversals and continuations, improving trade accuracy and risk management. 🚀
TATASTEEL (short-selling strategy)Please note that this is a general analysis based on the chart and not financial advice. Trading involves risks, and you should consult a financial advisor or conduct further research before making any trading decisions.
Suggested Trading Strategy
Based on the chart's current momentum and the possibility of further downside, a selling strategy might be considered. Here are the suggested levels:
Short Position (TATASTEEL - 1D Chart)
Entry: 151 INR (or on a break below with confirmation)
Stop Loss: 155 INR (4 INR) by day closing
Target1: 145 INR
Target 2: 140 INR (next support)
Disclaimer: Not financial advice; consult a financial advisor.
#TataSteel – At a Crucial Supply Zone! #TataSteel – At a Crucial Supply Zone! 🚀
Technical Highlights:
✅ Relative Strength: Strong improvement, now positive → Indicating outperformance against Nifty.
✅ Volume Surge: Increasing buying activity suggests strong accumulation.
✅ Sector Strength: The metal sector is bullish, supporting further upside potential.
✅ EMA Structure: Price is trending above short-term EMAs, showing bullish momentum.
Key Resistance & Risks:
⚠️ Supply Zone: Stock is currently trading in a supply zone → Could face some resistance here.
⚠️ 200 SMA: Closed just below the 200 SMA → A strong breakout is needed for further bullish confirmation.
Trading Plan:
📌 Breakout Confirmation: A sustained close above the 200 SMA could trigger a continuation move.
📌 Profit Booking Area: If rejection happens at supply, partial profit booking could be considered.
📌 Re-entry Zone: A pullback to the previous demand zone could offer a fresh entry opportunity.
Final Thoughts:
Tata Steel is at a critical juncture – a breakout above the 200 SMA could lead to a strong rally, while rejection at supply might cause a temporary pullback. Keeping a watch on price action near this level is key!
📢 What’s your view? Are you bullish on Tata Steel? 🔥
TATASTEELTata Steel Ltd is Asia's first integrated private steel company setup in 1907.
The company has presence across the entire value chain of steel manufacturing from mining and processing iron ore and coal to producing and distributing finished products.
The company has a target to increase domestic steel making capacity to 30 MnTPA by 2025.
The company’s product mix includes flat products such as hot rolled coils, cold rolled coils and galvanised steel, and long products such as wire rods, rebar, ferro alloys, tubes, bearings and wires. The product segments cater to agriculture, automotive, construction, consumer goods, energy and power, engineering and material handling etc.
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Tata Steel Ltd (NSE) – Simple Technical AnalysisPrice Action:
The stock appears to have been in a downtrend within a descending channel.
Recently, the price is attempting to break out from this channel.
Support & Resistance (Pivot Points - Fibonacci Levels):
The current price is ₹138.82.
Immediate resistance: Near ₹145 - ₹150 (Pivot R1).
Major resistance: ₹183.80 (Potential upside target).
Support levels: ₹109 (S1) and lower Fibonacci pivot levels.
Technical Indicators:
MACD (Moving Average Convergence Divergence):
The MACD (blue line) is trying to cross above the Signal Line (orange line).
Histogram is reducing negative momentum, indicating a potential bullish crossover.
Trend Breakout Potential:
If the stock sustains above the descending channel, a bullish breakout towards ₹183 could be expected.
Risk-Reward Analysis:
Upside Target: ₹183 (about 32% gain from current price).
Downside Risk: ₹109 (about 21% loss from current price).
Risk-Reward Ratio: ~1.5 (favorable for long position).
Prediction & Trading Strategy:
Bullish Scenario:
If price holds above ₹140 and breaks resistance at ₹150, we can expect an upside move towards ₹183.
The MACD crossover confirms strength in price momentum.
Bearish Scenario:
If the stock fails to hold above ₹130 and re-enters the descending channel, it might revisit ₹109 or lower.
Entry & Stop Loss:
Entry: ₹140-145 (after confirming breakout).
Stop Loss: Below ₹130.
Target: ₹183.
Conclusion:
Bullish bias if breakout holds.
Wait for confirmation above ₹140-145 for a strong move.
If rejected at resistance, a drop towards ₹109 is possible.
What is fibonacci retracements and how to gain profit from it ?### **What is Fibonacci Retracement?**
**Fibonacci Retracement** is a popular technical analysis tool that helps traders identify potential levels of support and resistance in a trending market. It is based on the Fibonacci sequence, a series of numbers where each number is the sum of the two preceding ones (e.g., 0, 1, 1, 2, 3, 5, 8, 13, etc.). The key ratios derived from this sequence — **23.6%, 38.2%, 50%, 61.8%, and 78.6%** — are used as potential levels at which an asset's price may retrace before continuing its trend.
In technical analysis, **Fibonacci retracements** are plotted by drawing a line between the **high** and **low** points of a recent price movement (either upward or downward). The horizontal lines are drawn at the key Fibonacci levels between those points. These levels act as potential zones where prices could reverse or find support/resistance.
---
### **Key Fibonacci Retracement Levels:**
1. **23.6%** – The shallowest level of retracement, typically indicating a weak pullback.
2. **38.2%** – A moderate retracement that is often considered a strong level of support or resistance.
3. **50%** – Although not a Fibonacci number, this level is significant in technical analysis. A 50% retracement is a commonly observed level for potential reversal.
4. **61.8%** – The most important Fibonacci level, often referred to as the "golden ratio." This level is frequently seen as a strong support or resistance area.
5. **78.6%** – A deeper retracement level, signaling a significant correction or pullback.
---
### **How to Use Fibonacci Retracements to Gain Profit?**
Fibonacci retracements help traders find entry points, set stop-loss levels, and define profit targets based on historical price movements. Here’s how you can apply Fibonacci retracements to gain profit:
#### **1. Identify the Trend:**
Before using Fibonacci retracement, it’s crucial to **identify the prevailing market trend** (uptrend or downtrend). Fibonacci retracements work best in trending markets, whether bullish or bearish.
- **In an Uptrend:** Identify the most recent **low** and **high** points. Fibonacci retracements are drawn from the low to the high, as the price is expected to retrace back down before continuing higher.
- **In a Downtrend:** Identify the most recent **high** and **low** points. Fibonacci retracements are drawn from the high to the low, as the price is expected to retrace upward before continuing lower.
#### **2. Draw Fibonacci Retracement Levels:**
- To apply Fibonacci retracement:
- In an **uptrend**, draw the Fibonacci retracement tool from the **lowest point** (start of the trend) to the **highest point** (end of the trend).
- In a **downtrend**, draw the Fibonacci retracement tool from the **highest point** (start of the trend) to the **lowest point** (end of the trend).
This will automatically plot horizontal lines at the key Fibonacci levels (23.6%, 38.2%, 50%, 61.8%, and 78.6%) on the chart.
#### **3. Watch for Price Reactions at Fibonacci Levels:**
Once you’ve plotted the Fibonacci retracement levels, watch how the price reacts as it approaches these levels:
- **Support in an Uptrend**: When the price pulls back to a Fibonacci retracement level, it may find **support** at one of these levels before bouncing back in the direction of the prevailing trend.
- **Resistance in a Downtrend**: In a downtrend, as the price retraces upward, it may encounter **resistance** at one of these levels before continuing lower.
#### **4. Enter the Trade:**
Once the price approaches a key Fibonacci level, look for signs of a **reversal**. This could be in the form of candlestick patterns (e.g., bullish engulfing or bearish engulfing), **divergence** with indicators (e.g., RSI or MACD), or other technical signals indicating the price is likely to reverse or continue in the direction of the trend.
- **In an Uptrend**: Look for the price to find support at a Fibonacci level (like 38.2%, 50%, or 61.8%) and begin to move higher. You could enter a **buy trade** when the price shows signs of reversal (e.g., bullish candlestick patterns).
- **In a Downtrend**: Look for the price to face resistance at a Fibonacci level and begin to move lower. You could enter a **sell trade** when signs of reversal (e.g., bearish candlestick patterns) appear.
#### **5. Set Stop Losses and Take Profits:**
Once you’ve entered a trade, it’s crucial to set **stop-loss orders** to protect your capital and **take-profit levels** to lock in gains.
- **Stop-Loss:** Place your stop-loss slightly below (for a buy) or above (for a sell) the Fibonacci level, depending on where the price retraced. If the price breaks through the Fibonacci level significantly, it could indicate that the trend is reversing, and you should exit the trade.
- **Take-Profit**: Use the next Fibonacci level as a potential **take-profit target**. For example, if you enter a buy trade after a pullback to the 50% level, you could set your target at the 23.6% level or the previous high.
#### **6. Combine with Other Indicators:**
Fibonacci retracement works best when combined with other technical analysis tools. Using multiple confirmation signals can increase the reliability of the trade setup:
- **RSI (Relative Strength Index)**: Use RSI to check for overbought or oversold conditions. For example, if the price pulls back to the 61.8% level, and RSI shows **oversold conditions**, this could confirm that the price may reverse upward.
- **MACD (Moving Average Convergence Divergence)**: Use MACD to confirm trend momentum. If the price approaches a Fibonacci level and you see a bullish or bearish MACD crossover, this can add confirmation to your trade.
- **Candlestick Patterns**: Watch for reversal candlestick patterns (e.g., bullish engulfing, hammer, shooting star) at key Fibonacci levels to strengthen your trade entry.
---
### **Examples of Fibonacci Retracement in Action**
1. **Bullish Trend Example**:
- The price of a stock moves from $100 to $150 (a 50% gain).
- You draw Fibonacci retracement from $100 (low) to $150 (high).
- The key retracement levels will be 23.6% at $141.80, 38.2% at $138.90, 50% at $125, and 61.8% at $123.20.
- The price pulls back to the 50% level at $125 and starts to bounce back up, showing bullish candlestick patterns like a **hammer**.
- You enter a **buy** position at $126, place your stop-loss at $123, and target the previous high of $150 for profit.
2. **Bearish Trend Example**:
- The price of a stock moves from $200 to $150 (a 25% decline).
- You draw Fibonacci retracement from $200 (high) to $150 (low).
- The key retracement levels will be 23.6% at $157.80, 38.2% at $161.80, 50% at $175, and 61.8% at $178.40.
- The price retraces to the 38.2% level at $161.80 and begins to show bearish signals (e.g., **bearish engulfing candlestick**).
- You enter a **sell** position at $160, place your stop-loss at $164, and set a take-profit target at $150 (previous low).
---
### **How to Maximize Profits Using Fibonacci Retracements**
1. **Trade with the Trend**: Fibonacci retracements work best in trending markets. Always identify the trend first and trade in the direction of that trend.
2. **Look for Confirmation**: Do not rely solely on Fibonacci levels. Always look for additional confirmation signals like candlestick patterns, volume, and oscillators (RSI, MACD) before entering a trade.
3. **Combine with Other Fibonacci Tools**: In addition to retracements, use **Fibonacci extensions** to project future price levels where the trend might continue after the retracement.
4. **Use Multiple Timeframes**: Check Fibonacci retracement levels on higher timeframes (e.g., daily or weekly) to identify stronger, more reliable support/resistance levels.
5. **Monitor Volume**: A price movement toward a Fibonacci level with high volume often indicates a more reliable support or resistance level.
### **Conclusion:**
Fibonacci retracement is a powerful tool that can help traders identify potential reversal levels in trending markets. By combining Fibonacci retracement levels with other technical analysis tools and proper risk management, you can increase the probability of successful trades and potentially profit from market corrections or continuations.
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So, 90/10, with 90% in the Vanguard 500 Index Fund and 10% in short-term government bonds, is his recommendation for his wife's trust. By the way, his wife is in her late 70s, and Warren will presumably be leaving her many millions of dollars
Tata Steel cmp 138.31 by Weekly Chart viewTata Steel cmp 138.31 by Weekly Chart view
- Volumes running close to Avg Traded Quantity
- Positively trending Technical Indicators EMA, MACD, RSI
- Resistance Zone 136 to 139 Price Band may be a probable Support Zone
- Price closure above Resistance Zone for few days would drive up the momentum for a fresh breakout opportunity