Tuesday, October 22, 2013

Tata Steel: Trading using Technical analysis, Elliott wave, Channels

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Tata Steel is one of the stock which was underperforming from the start of 2013.
In span of 7 months, it declined from 450 to 190 levels. In this kind of downtrend, it becomes very difficult to catch the reversal at the bottom.
We can see the fall from 450 to 190 was in prescribed channel. One would have made money using this channels resistance and support. However, observing the underperformance from this start of the year in Metal Index as well as Tata Steel, many would have been wrong at the time of major turning point near the level 200. After breaking the downward sloping red channel on upside, stock is continuously outperforming and has made higher high and higher lows. We were accurate in finding out important levels for this stock in an ongoing uptrend.
Below is the chart which was shown in “The Financial Waves STU” on 14th October 2013.
Tata Steel Daily chart:
Happened: (started rallying from 15th October onwards and still moving higher)
Below is the excerpt of daily research report which was published on 14th October 2013.
As shown in daily chart, the up move from 190 to 320 was in the form of intermediate wave A and then corrected in the form of minor wave w-x-y in intermediate wave B. Wave B corrected in perfect channel and followed resistance and support very well. The move above 320 indicated that intermediate wave C has started on upside. This wave has come near previous high of wave A at 315. Any move above this level will extend wave C towards 345 where C = 61.8% of A.
In short, any move above 320 will infuse buying pressure and stock can move higher towards 345 where next resistance comes. This scenario remains valid as long as 295 is intact on downside.
Along with that we have shown 60 mins chart of Tata Steel where internal wave counts is shown with channeling technique. Currently market is trading at the crucial levels and many beaten down sectors have started to show strength on upside. We are publishing daily equity report before market opens which includes Nifty Daily chart with clear explanation and 3 opportunist stocks. Visit http://wavesstrategy.com/index.php/contact-us.html for more details

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