TATASTEEL : Will Price hold monthly key support ??
Since the month of MAY onwards, the stock has been printing clear & loud lower lows & lower highs creating a strong & dominant downtrend pressure.During it's run-up, it offered us a lot of sell entry opportunities by using 20ema pullbacks(learn : 20ema strategy), breakout of swings as well as trend continuation patterns. Currently , price is retesting back it's flip resistance area of 230(learn : FLIP level strategy) & we can see price stopping on this layer of resistance & possibly a new lower high will be made(though we didn't get a sell signal yet). But now i'll be more cautious to play with this overall downtrend as price already tested a key monthly support coming around 220 area.Will the support hold here ??- that's a big question !!! Till now, this stock is still in a clear downtrend & didn't change it's pattern yet & now there is a 50-50 chance for the pattern to be continued or reversed. I'll still be playing with bear side in this till i don't see price changing the bearish pattern but as i said earlier, we'll have to fight with the monthly very important support here , so keep your eyes open to PRICE ACTIONS here to trade both side of the markets.
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PLS NOTE : All chart analysis posted here are the author's own idea of trading for educational purpose only & not any form of advice or recommendations or opinion to anyone.
MONTHLY CHART : PRICE IS SITTING ON KEY SUPPORT – PLAY IT SAFE NOW !!!