Metals have been outperforming the Nifty Index and Tata Steel looks the best of them
The above chart shows two important chart patterns.
- The double bottom formed between the months of late August and November
- The flag pattern over the last few trading days.
The double bottom has the neckline around the 383 level and should act as a very good support. The flag breakout has occurred on the 18th of November. The closest meaningful resistance on the charts lies around the 440 levels. The stock has room to move until there without too much supply.
With the target placed around 30 rupees away and a massive bullish undertone the stock could be looked at for intraday trading as well on the long side. From a positional perspective we get a target of 30 points with the stop below 395 which is 15 points. It affords a good risk-reward ratio from a trading perspective as well.
Happy Trading !