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Tuesday, 5 March 2013

Tata Steel–70 points fall, what next ?


I have been maintaining  a negative view on Tata Steel for the past several weeks based on pure charts analysis and the stock has fallen from 400 to 333 levels. What is next for this stock ?

On 11 Feb, I wrote about the critical support level of 400. As soon as it crossed, the stock continuously started falling. All the analyst downgrade further helped this fall.

Tata Steel–Critical Supports Broken–Short on rise

Now for the short term, Tata Steel has very strong support at 330 levels, and I feel that this support will be held. If for any reason this support is broken convincingly during any day, then another 15-20 points fall will be on the cards.

From daily charts point of view, I feel Tata Steel is ready for a bounce back in next few sessions. RSI and Stochastics are showing a positive divergence. However on the way up, key resistances will be 335, 346, 360.



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