The stock of Tata Steel tested the key resistance at Rs.380 and reversed down last Tuesday. Over the past three weeks, the stock has been moving sideways in the band between Rs.350 and Rs.380. As long as the stock trades in this range, traders with a short-term view should tread with caution.
Though the short-term trend is up, the medium as well as intermediate-term trends are still down. To alter the medium-term downtrend, the stock needs to conclusively rally above the key resistance of Rs.380. Such a rally will be bullish and take stock higher to Rs.400 and Rs.420 in the short to medium term. This will also give traders an opportunity to buy the stock.
But a decline below the current support level of Rs.350 will strengthen the medium-term downtrend and pull the stock down to Rs.340 and Rs.330 levels.
No comments:
Post a Comment