Tata Motors crashed in today’s trading session falling by more than 7% post its result announcement. It is thrilling to see prices behaving exactly as per Elliott wave patterns!
The sharp selloff in Tatamotors
stock today can be attributed to the extremely poor result announced that
showed decline in profits by nearly 96% year on year basis. Such sharp fall
in profits which was unexpected will obviously result into some serious weakness
in stock prices.
But for a trader what matters most is to see if there was a
trade setup that could have helped to capitalize this serious capitulation even
before the news or event.
Following was the stock tip on Tatamotors which we gave to
Equity calls clients on 9th February –
TATA MOTORS FUT SELL AT CMP 508.60 SL 520 TGT 490
TATA MOTORS FUT SELL CALL GIVEN BOOK PART TP AT 501.40 AND
TRAIL STOP TO COST
TATA MOTORS FUT SELL CALL GIVEN TARGET ACHIEVED BOOK PROFIT
AND EXIT AT CMP 488
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The above call was
given based on indepth research using Technical
analysis – Elliott wave and channels.
Now look at the below chart of Tatamotors shown today
morning equity research report – The Financial Waves short term
Tata Motors 60 mins chart: Anticipated today morning before equity markets opened
Tata Motors 60 mins chart –
Elliott Wave analysis:
Below is the research published today morning before
equity markets opened that showed detailed pattern analysis and Elliott wave
counts on Tata Motors
The daily chart
shows (shown in actual research
report) that from October 2016 intermediate wave (Y) is ongoing in form
of Flat correction pattern. Currently minor wave c of the same is ongoing which
has managed to breach the moving average line thereby keeping the daily bias
As shown in 60 min
chart, post breaching the blue channel support and the Head & Shoulder
neckline prices are struggling to generate momentum on either side. As per
wave perspective minor wave c of flat correction pattern is ongoing but we can
see that since last 2 sessions the previous low is intact which is concerning.
Now from near term perspective move below 499 will resume the downtrend for the
target of 485 or lower.
In short, for Tata Motors outlook will be negative as far
as prices remain below the neckline. On downside move below the previous low
should infuse selling pressure and push prices towards 485 levels.
The above research
only highlights the fact that using Advanced concepts of Technical analysis –
Elliott waves we are exploiting the probability to be in our favor.
Want to learn these
techniques? Attend the most advanced training on Technical analysis – Neo
wave, Elliott wave and Time cycles scheduled on 18th and 19th
March 2017. News or events does not always help in taking a correct trade
but it is best to look at the ongoing patterns and have a trading strategy in
place even before the news or results are announced. Learn
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