Wednesday, April 16, 2014

TATA STEEL:Many patterns in one

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We added Tata steel two months earlier also, when it was just started to move in trading range. Now, it breakout from that trading range in the end of march. Besides that trading range, it made many patterns within it.

    It broke down a double top at 408 first in the end of December and started to take a downward move and took a support at 336. After that it started to move in trading range of 336 and 395.

   During this trading range, it made two flat-bottomed descending triangle and broke down both of them successfully. First triangle broke down at 368 on 20 Feb and target of 345 was achieved successfully. The second triangle broke down at 344 on 7 March, but it failed to take the price more down and took the support at 336.

   Now the stock is in strong upward momentum from 14th March, breakout the resistance level of 395 on 27 March and heading towards the level of 450.

1 comment:

shreyas nevatia said...

Sir the descending triangle support of 336 was broken on an intraday basis. It will activate the stop loss and then reverse.What are views on such a scenario.