TATA MOTORS: JLR sales worry or Elliott wave counts?

TATA MOTORS: JLR sales worry or Elliott wave counts?

By Waves Strategy Advisors, For more information visit www.wavesstrategy.com To subscribe to daily equity research “The Financial Waves” write tohelpdesk@wavesstrategy.com or call on +91 9920422202 / +91 22 28831358

Tata Motors fell hard on 21st March 2013, but not for the reasons you probably have heard!

(Reuters) - Shares in Tata Motors end down 4.22 percent after falling as much as 5.6 percent on worries that China's new stringent fuel economy standard would adversely impact the auto maker's Jaguar Land Rover Ltd (JLR) unit.

Above news we read on 21^st March 2013 after equity market closed, giving the reason for a sharp fall in the stock. However, one day before the fall we have covered this stock in our daily equity report (The Financial waves) and predicted the fall with the help of advanced technical analysis i.e. Elliott wave counts, Fibonacci retracements along with momentum indicator and crucial levels. Below is the chart picked up from the equity daily report (The Financial Waves) which shows sharp fall in last two days (marked by eclipse) and currently quoting near day’s low of 266.80.

Tata Motors 120 mins chart:

Anticipated on 20^th March 2013:

Happened:

Waves Analysis:

Following is what we wrote before the news and positioned our readers on the short side -

Above stock is weekly chart of Tata motors, since last six trading sessions prices are consolidating between the narrow range of 280-310 levels. Yesterday, prices breached the crucial level of 280 and made an intraday low of 278.50. Momentum indicator price ROC exhibits the strong negative divergence.

As shown above in 120 mins chart, prices have ended minor wave c of wave ii near 310 levels and started the next leg on downside in the form of wave iii. Currently, prices are moving near the crucial level of 280. Generally, crucial levels are taken out with a gap. Hence, there is a possibility that a strong selloff can start if prices sustain below 280 levels.

Tata motors currently made a low of 268 and the news came when the stock was already down by more than 4.22% on 21^st March 2013.

Trading based on news would not have necessarily helped you to take trading decisions but technical tools and concepts like Elliott wave can help you to act before everyone else does. Think….That is where the difference lies!!!

To subscribe to this research visit www.wavesstrategy.com write to us at helpdesk@wavesstrategy.comor call us on +919920422202 / +91 22 288313588