Short Trade on Tata SteelTarget- 1190
Time Frame - 10 trading sessions
*************************************************
Head and Shoulder pattern has been formed on Tata Steel charts and the pattern has also been confirmed!
RSI is also around 40 which justifies the weakness in the stock.
MACD histograms are also justifying increasing weakness in the stock.
According to the head and shoulder pattern the stock must go to 1190 levels within 10 trading sessions.
TATASTEEL trade ideas
TATA STEEL - Divergence asisted reversal of polarity1. Divergence with RSI on daily TF.
2. Still has not not broken the July candle range.
3. Look at the RSI. It has always taken an up thrust whenever it has come near the demand zone.
4. We have a similar formation in the stock this time.
The trend might reverse from here.
These are my insights. I can be wrong as well.
Tata steelTata steel stock is in wave 5th of wave 3rd of the recent impulse till it ends, on daily charts, the most recent rally is ended in wave 3, as per theory,
both rsi and macd are showing bearish divergence in daily time frame, and this can also be seen in poor volumes and participations in metal stocks during the most recent rally, this is typical of wave 5 of some degree, as per scenario wave 4 depth of correction is marked near 1070 to 1100 range. it sounds hard but who knows we can go there if wave 3 comes to an end.
Key Levels are Mentioned on chart
Wave Structure and Volume
Rsi bearish Divergence in daily time frame
Macd bearish divergence in daily time frame
Creating bkt in daily time frame
Waiting for confirmation
Disclaimer
I am not sebi registered analyst
My studies are Educational purpose only
Please consult with your Financial advisor before trading or investing