July 3, 2012

TATA Steel Chart Update

  • TATA Steel gave good up move from the hammer candlestick which was shown last week. Price is now testing a possible resistance line.
  • Bulls of Tata steel has closed the day above 100 Day SMA. Weekly chart too is sustaining above 20 Week SMA (440) and 5 Week High EMA (440). Long shadow of the daily candle at the resistance line shows selling pressure at the top.
  • Bears need a break below 440. Bulls need to sustain above 100 SMA to gain strength.
  • S&P 500 EOD UPDATE


  1. GM San sir, Nice presentation. Even though Tatasteel spot is above 440, future is in huge discount of Rs.10/. How do u trade in such scenerio. Is it better to wait till future price climb up to spot levels or since huge discount means weakness wait till spot price breaks the 440 support.

  2. @ravi
    An ideal way to trade futures is to see a breakout in futures and spot at the same time. Don't worry about the discount and futures too much. But make sure that the reason for trade is justified in both futures and spot.
    For example close above 100 sma should happen in both spot and futures etc etc.

    One other way to trade is to trade the technical levels of futures alone with proper stop loss.