Tata Motors DVR Up 13%, Time Cycle with Elliott wave!
Jul 26, 2023
Tata Motors on 25th July 2023 announced to convert the DVR shares into Ordinary shares. The company will issue 7 fully paid-up new ordinary shares or every 10 'A' ordinary shares. This will give Tata Motors DVR shareholders a premium of upto 20% to existing price as on 25th July.
TataMotors DVR jumped by nearly 15% on 26th July on basis of above news.
Now let us look at it from Elliott wave and Time cycle perspective on weekly Time frame to see the broader trend.
Tata Motors weekly chart:
Tata Motors above chart shows that prices are traveling in form of wave 3 as per Elliott wave and turned up precisely from Time cycle zone. This stock has been forming lows near the 82 weeks cycle.
Covid low formed near 64 was also at this Time cycle low. This shows that price and time are in sync for up move and any dips can be used as buying opportunity as long as the cycle low near 400 remains intact which also happens to be near the wave (2) low.
Both Price and Time are perfectly synchronized for a strong up move to continue in this stock.
Tata Motors DVR ratio chart – Below the main chart there is ratio chart of Tata Motors to Tata Motors DVR. We can see that the ratio is falling constantly protecting its EMA. The prior support is near 1.28 and the ratio is still at 1.54. This means that it is better to buy Tata Motors DVR over Tata Motors even after a 14% jump.
In a nutshell, combination of Elliott wave along with Time cycle is one of the best Technical analysis tool to trade or invest in stock. Tata Motors DVR can be a good bet even after 14% jump basis of above ratio study.
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