Technical Analysis

Tata Steel resumes downtrend

Yoganand D | Updated on January 23, 2018 Published on May 24, 2015

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Tata Steel (₹341.5)

Tata Steel tumbled 6 per cent with good volume last week. It now tests a key support at ₹340. A strong fall can intensify the bearish momentum and drag the stock down to ₹320 and then to ₹310 in the short term. Traders with a short-term view can initiate short positions with a stop-loss at ₹351. Both the medium- and intermediate-term trend continue to be down for the stock. The indicators in the daily chart are trending downwards and are on the brink of entering the bearish zone. On the other hand, the stock has to decisively breach its immediate key resistances at ₹360 and ₹380. An emphatic rally beyond the significant resistance of ₹380 is needed to alter the medium term downtrend and take the stock higher to ₹400 and ₹420 in the short to medium term.

Published on May 24, 2015
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