August 9, 2010

TATA MOTORS in a channel

  • Tata motors share has been trading in a channel for many months now.
  • Right now the weekly chart is showing a shorting opportunity as the stock is trading near the channel resistance line.
  • One can go short around 915 levels with a small stop loss. Here the risk reward ratio is huge one can book profit at the middle of the channel.
  • The above trade idea is based on the channel. If the channel breaks out and closes above it one should use the stop loss.

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