Overall metal sector is witnessing selling pressure and most of the metal stocks are in red and some are near its 52 weeks low. Tata Steel has been moving in lack luster manner from past 4 consecutive months. Even in previous trading session this stock witnessed a steep selling.
Below is the chart showing detail analysis on Tata Steel and how we turned bearish on this stock using Elliot wave theory combined with Moving averages and Channels.
Tata Steel 60 mins chart:(Anticipated as on 28th December, 2018)
Tata Steel 60 mins chart:(Happened as on 03rd January, 2019)
Elliott Wave analysis:
As shown on daily chart, wave z is ongoing on downside. Prices are testing its 30-days EMA and have failed to take out on closing basis. An important resistance is now placed near 535 levels only break above this on closing basis can provide opportunity for creating long positions till then one should avoid catching a low.
As shown on the hourly chart, prices are moving within the downward slopping red channel which is intact since past 3 months. Wave (c) has completed on downside and as of now wave b of (x) is ongoing. Break below 500 can retest the low of wave (c) i.e. 485 levels.
In short,one should keep a close watch on 535 on upside and 500 on downside to initiate fresh trade. Move below this level will take prices towards 485 over short term.BANG ON!!
Happened: Tata Steel, has failed to show any sign of positive reversal. Further weakening in domestic market added to its vulnerability and prices made 52 weeks low near 481.20 levels.At times it is best to avoid catching low and using any pullback as shorting opportunity.
The above analysis clearly shows how well this technique works. Get access to our “The Financial Waves short term update” is daily equity research report covering Nifty and 3 stocks providing detailed analysis using Elliott wave and other technical analysis methods. Subscribe here