Tata Motors have been most under-performing stock in Auto Industry in recent past but now its time be the out-performer in coming months. Stock has tested sub 300 levels twice last year and while testing so it has created a Double bottom pattern on weekly charts of the stock. Have outlined Double bottom pattern on the adjoining chart, though it is not perfect text book pattern but it is too close to the same. Neckline which is defined or known as Breakout line is a 425 and we are approaching the same which would trigger a sure buy for medium term traders. Indicators have confirmed momentum crossover which confirmed positive divergence which is also marked with white line. Still we have to confirm 100 weeks average which is at 442 but i would rather recommend to trade on breakout of Double bottom pattern at 425. Target would be equal to the distance between Two lows and Neckline , calculated from the neckline.
So recommended target above 425 would be approx 555 with Stop loss 385.
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