Overall metal sector is witnessing selling pressure and most of
the metal stocks are in red and some are near its 52 weeks low. Tata Steel has
been moving in lack luster manner from past 4 consecutive months. Even in
previous trading session this stock witnessed a steep selling.
Below is the chart showing detail analysis on Tata Steel and
how we turned bearish on this stock using Elliot wave theory combined with
Moving averages and Channels.
Tata
Steel 60 mins chart:(Anticipated as on 28th December, 2018)
Tata
Steel 60 mins chart:(Happened as on 03rd January, 2019)
Anticipated:
As shown on daily chart, wave z is ongoing on downside. Prices
are testing its 30-days EMA and have failed to take out on closing basis. An
important resistance is now placed near 535 levels only break above this on
closing basis can provide opportunity for creating long positions till then one
should avoid catching a low.
As shown on the hourly chart, prices are moving within the
downward slopping red channel which is intact since past 3 months. Wave (c) has
completed on downside and as of now wave b of (x) is ongoing. Break below 500 can retest the low of wave
(c) i.e. 485 levels.
In short,one should keep a close watch on 535 on
upside and 500 on downside to initiate fresh trade. Move below this level will
take prices towards 485 over short term.BANG ON!!
Happened: Tata Steel, has failed to show any sign of positive reversal.
Further weakening in domestic market added to its vulnerability and prices made
52 weeks low near 481.20 levels.At times it is best to avoid catching low and
using any pullback as shorting opportunity.
The above analysis clearly shows how well this technique works. Get
access to our “The Financial Waves short term update” is daily equity
research report covering Nifty and 3 stocks providing detailed analysis using
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