Tatamotors had been showing strong outperformance over past few weeks. This stock had been a major laggard earlier but has shown a strong rise from the lows.
So, is it possible to capture the strong trend in such stocks by looking at the technical analysis methods?
See the below chart of the stock published on 11th April 2019 when it was trading near 215 levels.
Tata Motors Hourly chart: (Anticipated on 11th April 2019)
Tata Motors Hourly chart: Happened as on 15th April
Following was mentioned on 15th April 2019:
“As shown on daily chart (shown on daily equity research report) price broke above the falling channel through which it traversed since early 2018. There is a possibility that an important low is formed and we are seeing a medium term positive breakout. However, unless we see 5 legs up move in impulse form it is best to stick with the ongoing corrective counts that suggest we are in wave g of b and then one final leg on downside will come that will complete the major bear market in this stock. The current up push might be a trap from medium to long term perspective. However, over short term one can use dips as buying opportunity as long as 200 remains intact.
As shown on hourly chart, prices are moving in diametric pattern in form of wave b (blue). Currently wave g is ongoing on upside. The 45 period EMA has been providing support for the uptrend of wave g. The Hourly RSI is near resistance zone so we can expect some sideways movement and a break above 217.30 should take price towards 230 levels as far as 200 levels remains intact on the lower side.”
Happened: Tata Motors touched intraday high of 233 levels in today’s session. It moved precisely as expected and touched the target level above 230 in just 3 trading sessions which is gain of nearly 8%. This simply shows power of Elliott wave with other technical methods.
What is next? The overall trend remains bullish for this stock but it is best to buy on dips rather than buying after a rally of 8%. So which levels to enter from here on? Keep reading the daily equity research report for stock trading ideas and levels – “The Financial Waves short term update”. Get access here
We have also given intraday calls on Tata Motors DVR and it gave an amazing move achieving both the targets on upside. Get access to the Intraday / Positional advisory contact us here