Everyone knows the condition of the metal sector i.e. too bad
and there are many reasons behind it like the US-China trade war, CORONA
crisis, low demand, etc. However, these things will stop or recover from some
point and as per the chart study, Tata Steel is indicating this turning point. Let’s
see multiple time frame analysis in brief.
Tata Steel Monthly Chart: As per monthly chart stock has made 3 bottoms earlier first is 130, second-third is around 180, and now it is giving a signal of the fourth bottom. In the month of March, it has broken its important support of 320 and then made a neutral candle in next month. If we see the current month candle then it has not broken the previous candle’s high/low. That means it is trading in a range from this month and we can see a clear scenario on daily, weekly charts.
Tata Steel
Weekly Chart: We have drawn a parallel zone i.e. between 300 to 250 and the
stock is trading in this range from the last 9 weeks. The last two candles are
Doji which means from last 2 weeks neither bulls nor bears. Right now the stock
has given closing exactly at the center point of the channel.
Tata Steel Daily Chart: On this time frame we can see a clear picture, the stock is trading in a sideways zone and taking support from its 20 DMA. The stock has resisted four times from 300 and bounce three times from 250. We have to wait for a breakout to 300 or breakdown to 250 then we will get the next trend. Both 20 & 50 DMA’s are coming closer if stocks price cross & closes above both DMA then it will be ready for a breakout.
The strong entry level is around 250 and resistances are 300/320. We have to wait for dip or breakout, it is better if we enter near support. The Risk-Reward ratio will be good near support.
----------------------------------------------------------------------------------------------- Disclaimer: The contents produced here are purely for educational purposes. They should not be construed as buy/sell recommendations. I am not a SEBI registered Analyst or Investment Advisor. Readers are advised to consult their Investment advisor before taking any decisions based on the above write-up.
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Tata Steel Monthly Chart: As per monthly chart stock has made 3 bottoms earlier first is 130, second-third is around 180, and now it is giving a signal of the fourth bottom. In the month of March, it has broken its important support of 320 and then made a neutral candle in next month. If we see the current month candle then it has not broken the previous candle’s high/low. That means it is trading in a range from this month and we can see a clear scenario on daily, weekly charts.
Tata Steel Daily Chart: On this time frame we can see a clear picture, the stock is trading in a sideways zone and taking support from its 20 DMA. The stock has resisted four times from 300 and bounce three times from 250. We have to wait for a breakout to 300 or breakdown to 250 then we will get the next trend. Both 20 & 50 DMA’s are coming closer if stocks price cross & closes above both DMA then it will be ready for a breakout.
The strong entry level is around 250 and resistances are 300/320. We have to wait for dip or breakout, it is better if we enter near support. The Risk-Reward ratio will be good near support.
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----------------------------------------------------------------------------------------------- Disclaimer: The contents produced here are purely for educational purposes. They should not be construed as buy/sell recommendations. I am not a SEBI registered Analyst or Investment Advisor. Readers are advised to consult their Investment advisor before taking any decisions based on the above write-up.
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