Tata Motors Stock prices are receiving a lot of spotlight since from last couple of weeks. It has rallied all the way from 70 to 300 in less than a year. When we look at the daily chart, we can clearly notice an Impressive Uptrend in Tata Motors.
If you want to go through the Analysis quickly, Have a look at this video
To get a better perspective on the Uptrend and the Stock’s outlook, let’s analyze the Price Action of Tata motors on 1D Chart.
Tata Motors Price Action Analysis on 1D Chart
First of all, Uptrend started right after the Covid – 19 Crash in March 2020. We can notice that short sellers made multiple attempts to trade against the trend and either got failed or trapped.
Even though the Uptrend looks strong, there are two things we need to consider. The first thing is Volume has peaked out in Tata Motors and next, we can notice an aggressive buying activity after an extended Uptrend.
These two factors show a sign of caution in Tata motor Stock prices. Aggressive Buying activity along with Peak volume could be a sign of uninformed market traders like general public buying the stock. There’s a good probability of Prices going into a minor correction at least over a short-term basis.
It may go up, if it has some more force left in it. Reasonably not a good time to get into the stock, from a Risk – Reward point of view.
Despite all these, Stock might make a new high; In that case the overall analysis has to be reconsidered. Another Important fact is to note that, this entire outlook is from a Swing trading or Positional Trading perspective, maybe over a period of 3 weeks to 1 Month, not from a short-term or Intraday perspective. Traders should keep an eye on the Daily chart and should take decisions according to Price action.
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