Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Please conduct your own research before making any trading decisions.
Updated Technical Analysis:
Based on the updated chart, TATA Motors appears to have transitioned into a reversal pattern, breaking out of the previous downtrend and moving into a short-term ascending channel. The price action and volume suggest a potential continuation of bullish momentum if key resistance levels are cleared.
Key Observations:
New Ascending Channel:
The stock has established a new upward-sloping channel.
Support levels are holding at the lower boundary of this channel, providing a strong base for upward momentum.
Volume Analysis:
Increasing volume bars near support levels indicate stronger participation and buying interest.
The Volume Moving Average (1.41M) shows the current volume of 1.51M, suggesting an uptick in activity.
Key Levels to Watch:
Support:
768.40: Mid-channel support aligned with the 50% Fibonacci retracement level.
759.20: Previous major support, now acting as a long-term pivot.
Resistance:
787.35: Current price level near the mid-point of the ascending channel.
810.20: The upper boundary of the ascending channel, acting as a key resistance level.
Breakout Level: Sustained movement above 810.20 could lead to a broader bullish breakout.
Trend Shift Confirmation:
The breakout from the earlier downtrend channel (visible as a white diagonal line) signals a reversal and a potential shift to bullish momentum.
Trade Scenarios:
Bullish Case:
A breakout above 810.20 would confirm the bullish trend, with potential targets:
820–830: Short-term resistance zone within the ascending channel.
842.75: Long-term resistance aligned with the 0.236 Fibonacci retracement.
Bearish Case:
A break below 768.40 would indicate weakness, with potential downside targets:
759.20: Major support from the previous downtrend.
Re-entry into the previous downtrend channel, signaling bearish continuation.
Indicators Supporting Bullish Momentum:
Ascending Channel: The formation of a clear upward-sloping channel supports a bullish trend.
Volume Increase: Higher volume near support zones indicates strong buying interest.
Higher Lows: The price is forming higher lows, a hallmark of bullish continuation.
Conclusion:
TATA Motors has moved into an ascending trend after breaking out of the previous downtrend. A breakout above 810.20 with strong volume would confirm a bullish continuation. Conversely, failure to sustain above 768.40 could result in a return to the previous bearish trend.
Updated Technical Analysis:
Based on the updated chart, TATA Motors appears to have transitioned into a reversal pattern, breaking out of the previous downtrend and moving into a short-term ascending channel. The price action and volume suggest a potential continuation of bullish momentum if key resistance levels are cleared.
Key Observations:
New Ascending Channel:
The stock has established a new upward-sloping channel.
Support levels are holding at the lower boundary of this channel, providing a strong base for upward momentum.
Volume Analysis:
Increasing volume bars near support levels indicate stronger participation and buying interest.
The Volume Moving Average (1.41M) shows the current volume of 1.51M, suggesting an uptick in activity.
Key Levels to Watch:
Support:
768.40: Mid-channel support aligned with the 50% Fibonacci retracement level.
759.20: Previous major support, now acting as a long-term pivot.
Resistance:
787.35: Current price level near the mid-point of the ascending channel.
810.20: The upper boundary of the ascending channel, acting as a key resistance level.
Breakout Level: Sustained movement above 810.20 could lead to a broader bullish breakout.
Trend Shift Confirmation:
The breakout from the earlier downtrend channel (visible as a white diagonal line) signals a reversal and a potential shift to bullish momentum.
Trade Scenarios:
Bullish Case:
A breakout above 810.20 would confirm the bullish trend, with potential targets:
820–830: Short-term resistance zone within the ascending channel.
842.75: Long-term resistance aligned with the 0.236 Fibonacci retracement.
Bearish Case:
A break below 768.40 would indicate weakness, with potential downside targets:
759.20: Major support from the previous downtrend.
Re-entry into the previous downtrend channel, signaling bearish continuation.
Indicators Supporting Bullish Momentum:
Ascending Channel: The formation of a clear upward-sloping channel supports a bullish trend.
Volume Increase: Higher volume near support zones indicates strong buying interest.
Higher Lows: The price is forming higher lows, a hallmark of bullish continuation.
Conclusion:
TATA Motors has moved into an ascending trend after breaking out of the previous downtrend. A breakout above 810.20 with strong volume would confirm a bullish continuation. Conversely, failure to sustain above 768.40 could result in a return to the previous bearish trend.
Note
Target 1 Hit - 810.20 Key Movements:
Breakout Above Resistance Levels:
The price has broken out above 810.20, which was a critical resistance and the upper boundary of the ascending channel. The current price is at 818.00, reflecting a clear bullish breakout.
Volume Surge:
A significant increase in volume (2.26M) during the breakout confirms strong buyer participation.
The Volume Moving Average (2.08M) indicates this surge is well above the average, further strengthening the breakout's validity.
MA Alignment:
The moving averages are aligned in a clear bullish pattern, supporting the upward trend.
Key MAs:
MA 4 (795.50) and MA 3 (790.90) provided earlier support and have now moved below the price, acting as trailing support levels.
Key Levels to Watch:
Support Levels:
810.20: The breakout level, which now acts as immediate support.
795.50: Previous key moving average support.
781.00: Major support and the channel's lower boundary.
Resistance Levels:
830–835: Next short-term resistance zone for the ongoing bullish momentum.
842.75: Long-term resistance, aligning with the Fibonacci retracement and the prior target.
Scenarios to Watch:
Bullish Scenario:
Sustained trading above 810.20 with continued volume support could lead to:
Testing 830–835 in the short term.
A potential rally toward 842.75 as the next major resistance level.
Bearish Scenario:
A pullback below 810.20 could signal profit booking, with the price potentially retesting:
795.50 (support from MA). 781.00, the lower channel boundary and major support.
Conclusion:
Momentum: The breakout above 810.20 and increased volume confirm bullish momentum, with potential for further upside.
Next Targets: Watch for a move toward 830–835 and possibly 842.75, barring any pullbacks below 810.20.
Risk Management: Support at 795.50 and 781.00 should be monitored closely in case of a correction.
Note
Evidence of the New Channel: - I'll update the chart based on price action next week. Hope it hits ST target of 842.75 next week. If the analysis helped you, please leave a comment and boost the idea. Your support is my inspiration. Thanks to all.Upper Boundary:
The price breakout above 810.20 suggests the creation of a new upper boundary.
The current high around 818.85 could mark the starting point for a new resistance trendline within this bullish channel.
Lower Boundary:
The lower boundary aligns with the MA Ribbon (around 790.90–795.50), providing dynamic support for this new trend.
The price action along the lower boundary indicates consistent higher lows, a hallmark of an upward-sloping channel.
Mid-Channel Action:
The price has tested the mid-channel line (dashed line) multiple times, confirming its significance as a pivot level during the upward movement.
Note
Target 820 hit today. Two more to go based on this analysis - 830 and 842.75
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.