December 16, 2010

Diamond pattern of TATA STEEL

CHART-II
  • Tata Steel breaks the resistance line of the diamond pattern.
  • Next targets for the stock are 667 and 680 and 695.
  • Price should sustain above 667.
CHART-I

  • Tata Steel weekly chart is showing a diamond shaped consolidation pattern.
  • Diamonds are bearish pattern. But their are instances of good upside breakouts seen from diamond pattern.
  • So price action above 658 and 670 will favor bulls.
  • Bears have to wait for a bit longer as the levels are 615, 597 and 588. So things will favor bears on a break below 615.
  • Between 615 and 654 price will remain in a range. But this range will get smaller as price gets closer to the apex of the diamond pattern.

4 comments:

  1. Hi San...

    With price closing above the pattern at 660, and with 660 call seeing sig liquidation of OI along with massive addition of OI in 680 call point to a bullish picture. But stocsF is OB.

    whats your take on this ? longs for target of 680+.

    regards

    ReplyDelete
  2. @Ka
    I have updated the chart. If stock sustains above 667 it will target 680 as you said and then 695.

    ReplyDelete
  3. Dear San,
    Sustain means?should it close above 667 levels on weekly chart?

    ReplyDelete
  4. Dear San,
    Im in the market from last year and i lost all my money,but im very much passionate abt market.At last i got to know that its all about technicals.Im willing to learn about technical analsys.Do you conduct any classes on technicals?

    Regards,
    vamshi krishna

    ReplyDelete