Technical Analysis

Tata Steel extends its downtrend

Yoganand D | Updated on January 24, 2018 Published on March 29, 2015

After testing the immediate support level of ₹324, the stock plummeted 4 per cent, conclusively breaching it last week. The stock is on a downtrend across intermediate, medium and short-term time frames. It hovers well below its 21-, 50- and 200-day moving averages. Both the indicators in the daily and weekly chart are featuring in the bearish zone, backing the stock’s downtrend. The stock can extend its downtrend and is likely to find support at the immediate key long-term base at ₹300. Traders with a short-term view and high-risk appetite can go short with a stop-loss at ₹323 levels. Exit the position if the stock rallies above the stop-loss as a corrective rally could be in formation for an up move to ₹330 or ₹340 levels. Subsequent resistances are pegged at ₹350 and ₹360 levels. Investors with a medium-term perspective can avoid, until a clear bullish trend emerges.

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