Tatamotors had been showing strong outperformance over past
few weeks. This stock had been a major laggard earlier but has shown a strong
rise from the lows.
So, is it possible to capture the strong trend in such
stocks by looking at the technical analysis methods?
See the below chart of the stock published on 11th
April 2019 when it was trading near 215 levels.
Tata Motors Hourly chart: (Anticipated on 11th April 2019)
Following was mentioned on 15th
April 2019:
“As shown on daily chart (shown on daily equity
research report) price broke above the falling channel through which it
traversed since early 2018. There is a possibility that an important low is
formed and we are seeing a medium term positive breakout. However, unless we
see 5 legs up move in impulse form it is best to stick with the ongoing
corrective counts that suggest we are in wave g of b and then one final leg on
downside will come that will complete the major bear market in this stock. The
current up push might be a trap from medium to long term perspective. However,
over short term one can use dips as buying opportunity as long as 200 remains
intact.
As shown on hourly chart, prices are moving in
diametric pattern in form of wave b (blue). Currently wave g is ongoing on
upside. The 45 period EMA has been providing support for the uptrend of wave g.
The Hourly RSI is near resistance zone so we can expect some sideways movement
and a break above 217.30 should take price towards 230 levels as far as 200
levels remains intact on the lower side.”
Happened: Tata Motors
touched intraday high of 233 levels in today’s session. It moved precisely as
expected and touched the target level above 230 in just 3 trading sessions
which is gain of nearly 8%. This simply shows power of Elliott wave with other
technical methods.
What is next? The overall trend remains bullish for this
stock but it is best to buy on dips rather than buying after a rally of 8%. So
which levels to enter from here on? Keep reading the daily equity research
report for stock trading ideas and levels – “The Financial Waves short term
update”. Get access here
We have also given intraday calls on Tata Motors DVR and it
gave an amazing move achieving both the targets on upside. Get access to the Intraday
/ Positional advisory contact us here
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