Tata Steel jumped almost 6 per cent with good volume in the previous week, breaking a key resistance at Rs.250.
The stock is in a short-term uptrend that is getting strengthened. Indicators such as price rate of change and moving average convergence divergence hover in the positive territory, implying upward momentum. Those indicators in the weekly chart are heading towards the green too.
Traders with a short-term horizon can buy the stock at current levels with a stop-loss at Rs.240. A strong rally can take the stock northwards to Rs.270 and then to Rs.281 where the 200-day moving average in poised. But a plunge below the significant support level of Rs.225 will diminish the short-term uptrend and drag the stock down to Rs.215 or Rs.200 in the coming weeks.