Tatamotors had been a major laggard and this stock has continued to capitulate for many months now. Anyone who tried catching a fall under the impression how far will it go is already in losses!
During such kind of medium term negative trend the best strategy is to use any pullback as shorting opportunity rather than trying to catch a low. SBI, Sunpharma, BHEL, Relcap and many more are classic examples that will make you rethink – How far will it fall!!!
Below is the chart of Tatamotors picked up from our daily research report – The Financial Waves short term update
Tata Motors Daily chart:
Below is part of the research picked up from the daily morning research report
Elliott Wave analysis:
In our earlier update for Tata Motors dated 27th April 2018 we mentioned that, “Trend for Tata Motors is bearish as of now. A move below 325 is expected to take prices towards 310 levels as long as 342 is intact on the upside.” BANG ON! Tata Motors made an intraday low near 305 and closed near 310 in yesterday’s trading session.
As shown in the daily chart of Tata Motors, prices continued moving southwards within the downward sloping red channel. The prices maintained its downward trend with no positive attempt of an up move. As per wave perspective, wave y (blue) of third standard correction is ongoing. This keeps the bias for Tata Motors negative. Also this is the worst performing stock within the automobile space and interestingly it is trading at 52 week’s low. So avoid catching a falling knife as any pullback will be short lived.
As shown in the hourly chart (shown in actual research report), wave iii of c is ongoing. The prices can be seen approaching the channel’s support line near …… levels. As long as the 30 period moving average near ……. is protected the trend will continue to remain bearish. A pullback towards 315 levels should be used as shorting opportunity for a target of ….. or lower.
Tata motors made a high of 315.65 in today’s session and reversed back from there exactly as expected. It is best to now trail stop towards the cost level near 315.65 so that position becomes risk free and keep riding the trend for the mentioned target in the daily research report.
“The Financial Waves short term update” is a daily research report published in the morning with trade setup on Nifty, stocks having applied Elliott wave, Time cycles and various technical analysis methods. Subscribe NOW under summer offer and we will set you up for complimentary reports as well. Here is the best deal that you can get – Intraday / Positional advisory with free research reports at discounts upto 50%. See the various offers below:
No comments:
Post a Comment