Tata motor : Wave Analysis, Support & Anticipated Target area
The chart provided illustrates Tata Motors' price movements and technical levels on a weekly timeframe, showcasing a detailed Elliott Wave count and Fibonacci retracement levels. Below is the analysis based on the chart:
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Key Observations:
1. Elliott Wave Analysis:
2. Fibonacci Levels:
3. Support and Resistance Zones:
- Support:
4. Volume Analysis:
5. Long-Term Projection:
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Conclusion and Recommendation:
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Key Observations:
1. Elliott Wave Analysis:
- The chart highlights a 5-wave structure of Elliott Wave theory:
- Wave (1), Wave (2), Wave (3), Wave (4), and the anticipated completion of Wave (5).
- Currently, the chart seems to be in Wave (4), showing a corrective phase after a significant upward trend in Wave (3).
- The possible completion of Wave (4) is indicated near a support area at ₹730, before the start of Wave (5), which could represent another bullish rally.
2. Fibonacci Levels:
- Fibonacci retracement levels are drawn from the Top of Wave (3) to the Bottom of Wave (2).
- Key retracement levels to monitor include:
- 0.382 (₹839.55): The price is near this level currently, indicating a crucial point of support.
- 0.5 (₹750.10) and 0.618 (₹660.65): These levels could act as deeper support zones if the price continues to correct.
- A bounce from these levels could indicate the continuation of the bullish trend into Wave (5).
3. Support and Resistance Zones:
- Support:
- - The ₹730 zone is labeled as a critical support level.
- - Other potential support levels are marked by Fibonacci retracements (₹839, ₹750, ₹660).
- - Resistance:
- - The high of Wave (3) around ₹1,100 serves as a major resistance level.
- - Further upside resistance lies beyond the ₹1,300 mark (based on Fibonacci extension levels of Wave (5)).
4. Volume Analysis:
- There is a significant spike in volume during Wave (3), suggesting strong buying momentum during the rally.
- The current corrective phase (Wave (4)) exhibits relatively lower volumes, which aligns with the consolidation nature of corrective waves.
5. Long-Term Projection:
- If Wave (5) materializes, the target for the next bullish move could extend towards the Fibonacci extension levels of ₹1,300–₹1,500.
- This aligns with a broader upward trend.
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Conclusion and Recommendation:
- - Bullish Bias: Tata Motors remains in a long-term uptrend, with Wave (5) likely to result in new highs if the corrective phase (Wave 4) holds above key support levels.
- - Support Focus: Investors should watch the ₹730–₹750 range for signs of reversal or accumulation.
- - Risk: A break below ₹660 could invalidate the bullish structure and signal a deeper correction.
- - Strategy: Traders could consider entering long positions near the identified support zones with appropriate stop-loss levels, targeting higher Fibonacci extensions for Wave (5).
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