Technical Analysis

Tata Steel is hovering below a key resistance

Gurumurthy K | Updated on January 23, 2018 Published on May 10, 2015

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Tata Steel (₹366.2)

Tata Steel has been hovering below its key medium-term resistance level at ₹380 over the last two weeks. The immediate outlook is not clear. Short-term traders can stay on the sidelines. Support is at ₹356 — the 21-day moving average. A breakout on either side of ₹356 and ₹380 will determine the next leg of moves for the stock. Given the overall negative sentiment in the market, the stock can decline below ₹356 in the coming days. Such a fall can take the stock lower to ₹345 and ₹340 in the short term. On the other hand, if the stock manages to breach ₹380, which is less likely, then a rise to ₹400 is possible. As long as the stock trades below ₹380, the medium-term downtrend will remain intact and the stock can target ₹300 levels.

Published on May 10, 2015
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