TATA Steel has witness an important “double bottom formation” at 554 levels. On Friday it witnessed a gap up opening .It has given close above 5 and 10 day Moving averages. We could see that TATASteel has been taking support and resistance at Fibonacci levels throughout the last year. Double bottom and its breakout is also the Fibonacci levels. After the breakout at 594 levels target comes out to be 629 which is also a Fibonacci resistance. So my weekly pick this week is TATASTEEL.
Levels:
CMP: 573
T-594/630
SL-556
14 day RSI- 48 and turning up strong
Stochastic: Crossover at 20.

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