Tata Steel is one of the heavy hitters in the metal sector and steel industry. But since the entire market is volatile, the stock prices of Tata steel are already down by -16%.
After rallying for the last couple of months, stock prices hit the road block and have been moving lower in the last few weeks.
So far, prices have declined from 113.00 all the way to 96.00, since mid-August. At the time of writing this, prices were trading close to 97.00 per share.
Take a look at the Price Action on 4h Chart
TATA Steel – Price Action Analysis on 4h Timeframe
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Right now, we can see a strong momentum breakout from the previous support zone at 104. Strong selling pressure is visible on the stock.
If the selling continues to sustain further, stock prices could fall even lower. The temporary support is at 95 and the major support zone is around 90.
Stronger the selling pressure, the easier it is for the prices to breach these support zones. It can attract short sellers and more sell orders.
Another interesting aspect is the increasing bearish volume. Even before the breakout, Bearish volume increased constantly on the stock.
My view is that the general direction of the stock depends on the overall market sentiment and outlook. As the sentiment is bearish, prices might continue to move lower or become sideways.
What’s your view on Tata Steel? Leave your thoughts in the comment section…
