Friends, if you have seen the automobile sector then it is consistently in downtrend from last 2 month. Before this, we have written our view on Maruti Suzuki Ltd. and it has worked nicely. In addition, we have found one more auto stock with new chart pattern.
Tata Motors Ltd. (NS: TATAMOTORS) formerly Tata Engineering and Locomotive Company, is an Indian multinational automotive manufacturing company headquartered in Mumbai, Maharashtra, India. It is a part of Tata Group, an Indian conglomerate.
Technical Overview of TATA MOTORS: Here we are going to explain Head & Shoulder chart pattern. As we can see in below daily chart, the stock price has made the first top (Shoulder 1) on 5th March 2019 and has given the confirmation of the first shoulder on 28th March 2019. After, that price has made the second top (Head) on 18th April 2019, but the level of the second top is greater than the previous one. Then the stock price has fallen down and stop near previous support i.e. around 169. Immediately in the next three trading days, the stock has made the third top (Shoulder 2) but this time level of the top is smaller than the previous one. On 6th June 2019, the stock price has given closing near 169 and completed 100% Head & Shoulder on the daily chart. Volumes were good in compare of average volumes while creating the head & shoulder. You can see a clear picture in the second picture with volumes.
Now the stock has closed below their Neckline and given confirmation of Head & Shoulder break down. As per our view, Tata Motors is ready to fresh fall and next support is around 130. As per the chart pattern, the downside target is big and in support, the automobile sector is bearish. So more chances to touch their 52 weeks lows again.
Click here to read the fundamentals of the company.
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