Crucial Level for this stock now going ahead – Pain or Gain ??

Crucial Level for this stock now going ahead – Pain or Gain ??

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The following company has lots of hope for shareholders from past many years but has failed to deliver it

Now at crucial juncture will it deliver or fail again, The stock has been in hard landing for quiet sometime now lets see what chart says

 

The stock was in bull market from 2001-2002 levels and had a parabolic run till 2008. After Lehman Crisis crushed the global markets this stock was also pounced by bear and almost retested 2003-2004 levels.

This is very high beta stock and it jumps and falls faster than index. But off late from 2013-2014 its making Lower Highs and Lower Lows and has formed Head and shoulder on larger chart pattern and is on the verge of making another head and shoulders now.

Click to zoom the chart

tatasteel

Lets Analyse Chart now.

Line 1 – Major Support line (Green)

Line 2 – Major Resistance line (pink)

Line 3 – Current Resistance line (pink) which it recently broke out on upper side and which will probably move to 425-440 zone (Bullish for Stock once break on upside will update)

If 440 zone is not taken out then head & shoulder bearish pattern + Triangle resistance zone will come into effect and Bears may again pounce on the stock downside (Green Line Support as of now, if breaks then major fall will update if happens)

The Stock is Tata Steel – One of the oldest reputed Indian and global conglomerate company. The Chart is showing weak structure as of now lets see what it does.

Views expressed are solely mine and for educational purpose and no positions of mine buy / sell as part of disclaimer

please read full disclaimer here

 

 

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