Tata Motors: Did Charts warn us ahead of the NEWS

6 июл. 2021 г.

Tata Motors

There was a NEWS today in afternoon with regards to Chip shortage effecting JLR car production and that it might take a toll on profitability for the Company. The NEWS took a heavy toll on Tata Motors instantly.

Now let me go by disclaimer, this is analysis in hindsight which is easier as the outcome is there in front of us now.

Also, I have not traded this set up, nor is this any kind of recommendation now. (although you can check out my other ideas on Tata Motors in the links below).

But the fact is: Technical Analysis gave us warning signals way before the NEWS was out.

If you look at the charts,

- the stock had been trading at the edge of blue line
- 356 -360 as you can see has been a major hurdle for Tata Motors ( marked by red line and red arrow marks)


So, today when the stock came in the zone around 356 levels, the cues were there for those who understand Technical Analysis that the stock is at resistance. The risk was minimum to sell in the zone of 356-360.

The NEWS came in and once the blue line was taken out, it only helped those who positioned themselves based on this Technical Analysis set up.

If you follow Technical Analysis and if you had an eye on the stock, you would agree that Technical Analysis was again ahead of NEWS in terms of signaling the potential risk above 355 levels

Let me know what you think, in the comment section below


Regards,
Vaibhav Deshpande