Spotted this trade last night. Tata Steel is one of the prestigious companies in India. From the very beginning of 2013 it started a downtrend which is still continuing. It has given up about 40% of its value ever since. Why do you we want to buy a stock that is in a downtrend ? Because It has started to show some signs of trend exhaustion. After searching the net I have found no bad news about the stock except one. TCS has replaced Tata Steel as India's most admired company.
First lets take a look at Weekly chart of Tata Steel.
On the weekly chart , the last bar has turned blue , lifting off any censor on buying the stock. A divergence between price and MACD histogram is also visible, a bullish sign. Lets flip to the daily chart.
Closed at 262.65 on friday. Last two bars are blue. MACD histogram has started to go above 0 line. A divergence is showing between price and force index. While the price is coming down , force index is refusing to come down and ready to go up. That's a divergence. Is there a guarantee that the stock will go up ? No. Is there a good probability that the stock will go up ? yes of course. According to elder impulse system this should be a good trade. Just don't jump on and apply all your capital to this one trade. Follow your money management. Remember this is a countertrend trade, a quick 5% -7% profit would be a nice reward. Trade safe.
First lets take a look at Weekly chart of Tata Steel.
On the weekly chart , the last bar has turned blue , lifting off any censor on buying the stock. A divergence between price and MACD histogram is also visible, a bullish sign. Lets flip to the daily chart.
Closed at 262.65 on friday. Last two bars are blue. MACD histogram has started to go above 0 line. A divergence is showing between price and force index. While the price is coming down , force index is refusing to come down and ready to go up. That's a divergence. Is there a guarantee that the stock will go up ? No. Is there a good probability that the stock will go up ? yes of course. According to elder impulse system this should be a good trade. Just don't jump on and apply all your capital to this one trade. Follow your money management. Remember this is a countertrend trade, a quick 5% -7% profit would be a nice reward. Trade safe.
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