Tata Motors is one of the few stocks that have consistently broken through the previous highs in the last few days. Despite average fundamentals and earnings, it’s outperforming the broader market along with few other automobile stocks. The Momentum that has picked up in the stock prices, over the last week, has decreased slightly when it approached the parallel resistance at 175.00. Right now, Tata Motors is trading around an important threshold point of Resistance, Take a look at the Chart…
Price Action Analysis of Tata Motors
It’s obvious to notice that Tata Motor Stock prices are trading in a Structural Upward Range formation from June 2020 onwards. So far, shares have rallied from 90 to 180 over the period. We can recognize the parallel support and resistance lines, clearly on the chart. They have acted as a turning point for buying pressure and selling pressure. Right now, prices are testing the same Parallel Resistance zone at 180. Two possible scenarios could play out over here – Either we may witness a clear breakout from the Range. Or we may see a false breakout and sellers pushing the prices back into the Range.
Traders should keep an eye on the Price Action around the resistance, as we may get some interesting trading opportunities on Tata Motors over the coming days.
