Category Archives: Tata Steel

Tata Steel yet to start a rally

Tata Steel has shown some fantastic momentum in recent years and now investors who have missed the move are waiting for a correction or feels the stock is overvalued. But lets talk about the stock technically again! In my last post on Tata Steel at “Still avoiding Metal Stocks? Not Tata Steel Now!!  i did recommend to go long on the stock at 447 but still Tata still is yet to start a Rally! My view is purely for long term investors as what i am gonna post today is on Monthly charts of Tata Steel from which patterns are most favorable to investors with the view of minimum 6 months of holding period.

So the chart attached is clearly showing positive momentum for the stock since almost 2015 but still the actual technical rally is to kick-off. The Blue lines are showing the Bullish Formation : ” Double Bottom “. The pattern has a neckline at 575 which means stock would give a buy over the close at 575 which is termed as breakout in technical terms. If we try to channel out its move from 2015, we get a perfect parallel line movement and it seems to have equal breakout level on upside at 575 as double bottom making July month crucial for the stock and new investors. Ofcourse indicators are into overbought zone but still it has potential to move much ahead. The dotted blue line from the neck line gives us pattern target of 900-940 which is almost 80% upside from the current levels and for those who followed my last post on the stock has 100% upside.

On the risk side, stock has support of 20 month avg at 400 which is also support drawn by connecting 2007-08 highs. MACD which i consider to be the tool of long term positional traders has just crossed 0 mark on monthly chart which supports my view of Double Bottom breakout pretty soon.

So strategy for Long term investors.” Buy Tata steel at 575 tgts 900-940 sl: 400″  Rd disclaimer before investing

Still avoiding Metal Stocks? Not Tata Steel Now!!

Metal Stocks have been under performers since last 8 years, from 2008-2016 but not now!!! In a broader sense we may say that 8 year bear cycle of commodity prices have ended last year at fundamental level. We have seen global metal prices bouncing almost 20% from the lows in 2016 which has resulted in turned in many global companies like Rio Tinto and BHP. And now metal price hike effect would start appearing on indian metal company’s Balance sheet. But before fundamental guys say’s “BUY”, technical charts have already given a breakout…

tataSteel_Monthly_Jan17

Above chart is of TATA STEEL monthly time frame, where we could notice that stock has just notched out of symmetric triangle almost after being intact for 17 years!!  This clearly signs of a turnaround for long term.  On the upside as a yearly investor, u could see 600 mark but above that it would again be a double bottom breakout which activate target of 950..So ball is in your court to decide what you wanna do with the stock

Strategy for Investors:

Buy CMP: tgts 600/950 SL: 350

Now coming for short term traders, they too have a great trade ahead……………..

tataSteel_Daily_Jan17

So now lets have a look at Daily chart above which says a double bottom breakout with a breakout gap. Even the volumes at the breakout is strong…Yesterday which was a breakout on daily chart is the same price for breakout on Monthly chart as i stated above..So 437 mark is strong technical support now. Though it doesnt mean we can have a profit booking but we may be sure that each dip now is a buy.

Strategy for Traders: Buy with tgts of 500 sl: 412

Happy Profit mining to all!!