Stock Update [TATASTEEL]
The stock saw a nice up move in last couple of weeks. But now the stock has stalled around an important resistance level.
The daily chart shows that the stock is forming a P over P pattern, suggesting forcing action by buyers, but SM sellers coming in after every rally. This pattern points towards exhaustion. But the WRB going into the previous weak reference warns of a possible absorption.
Now this price action is inconclusive and we need to drop down into lower time frames to find more clues.
On the 15 min chart we can see a potential P+Spike pattern, but the follow through down is not as expected. Still we have stayed below an important HVN so far.
So as long as we stay below that we can say that sellers may come in and assert themselves anytime. but if buyers are able tot take it our and find acceptance above, then further upside will happen.
500 is an important level and needs to be protected if buyers are to stay in control. It is the BO level from the prior re-accumulation.
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