Tata Steel: Struggling to return

TATA STEEL Daily NSE Stock Chart Technical Analysis:

Tata Steel Close & CMP: 613

• Tata Steel has a long term diagonal support line as visible on the chart.  This line crossed the diagonal resistance last week at the 638 price level.

• As is visible on the chart, the price fell below and remained below the diagonal line of support.  This is a negative signal.  As the diagonal line of support is moving upwards, it is obvious that the more time Tata Steel remains lower, this line of support will seem farther and farther.  

• Moreover, the diagonal line of resistance will now start pushing this stock's price lower.

• The only good luck charm is the support line at 578.  As long a this line withholds, one may feel safe.  However, if 578 is taken out, it's going to be dangerous for Tata Steel.

• A fall below 578 may be traded with a short position.

• For Elliott Wave Traders:  2 sets of A-B-C corrections seem to have occurred.  We are now looking at either the Wave 1 of the next bull trend, or Wave X for the next set of corrections.  If 578 is taken out, then we can conclude that we are in the next set of corrections and headed down for another Wave C.

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TATA STEEL Daily NSE Stock Chart Technical Analysis