CMP (NSE) 15:59, 16 Sep
Last updated on
04 Jan, 2018
Classic Flag Pattern breakoutTata Steel has been stuck in a consolidation phase and has gone through a healthy price correction in the past eight weeks. During this phase, the stock corrected by ~10%, falling from its previous peak of Rs735 hit on October 30, 2017 to lows of Rs660.7 hit on December 6, 2017. This phase saw Tata Steel forming a classic Flag Pattern on the weekly chart. Last week of December 2017 saw prices rise smoothly accompanied with increasing volumes. This strong price movement has finally triggered a breakout.
Projection of the Flag Pattern indicates that Tata Steel is expected to make an attempt to rally towards its potential target of Rs932 in the coming 6-9 months. The breakout will stand void once the stock cracks below Rs670 on weekly closing basis.