- Tata Motors weekly chart shows a bullish looking 'W' Breakout. if this move sustains above 431 levels bigger moves are possible.
- Next crucial resistance is near 480 Levels. Price can jump well above 500 levels if it moves above 480 levels. Unable to cross 480 levels on closing basis may stall this breakout.
May 31, 2016
- First chart shows an Ascending broadening wedge in 4 Hour time frame. There are many target versions for this pattern upon a breakout or breakdown But what i am interested in is how it is going to play within this pattern. As price has only made two meetings with the upper resistance line Bulls are likely to meet the upper resistance line first. This will also validate this big breakout.
- One can keep a trend strength indicator for catching maximum points on such breakouts. Usually for small breakouts i use the 15 Minutes cloud. But one can experiment with this when the breakout is big, Many uses even the One hour cloud which can capture big points if its a big big breakout. For this one i am following the 30 Minutes cloud.
- As far as the pattern goes I am expecting an upper touch first before it turns to make a big bearish move. That's what i expect this one to do, But stock patterns many times does not work exactly the way want it to work. So have trailing stop loss and enjoy partial profits till the move last.