Initiate fresh short position in Tata Steel with as top-loss at Rs.340 levels

Tata Steel in a downtrend

Tata Steel extended its decline by plunging 3.8 per cent decisively breaching an immediate support level at Rs.340 last week. The stock is now heading towards the next support level at Rs.320 and Rs.310. 

Traders with a short-term perspective can hold their short position and also initiate fresh short position with as top-loss at Rs.340 levels. The medium- as well as intermediate-term trend continue to be down. 

The short-term trend for the stock appears to be turning bearish. The indicators and oscillators in the daily chart are featuring in the bearish zone. 

As long as the stock trades below the significant resistance level at Rs.360 the short-term trend will remain down. The medium-term trend will remain down until Rs.380 resistance is broken. Next medium-term resistances are pegged at Rs.400 and Rs.420.