Tatasteel is a short term trader’s delight. This is one stock that is never out of momentum be it up or down. As of now it is on the up move. In last six months there have been many gaps. Gaps only tell that there are jerks in the stock. It is never a smooth moving stock and your stop loss has to be very very tight. It can go against an established trend in quick time. Right now facing resistance at one of the previous down gap starting point. If this could be broken on the upside then there is some more room left for up move.
Even on a positive break out beyond that gap the upside is limited. Right after 450 it faces more resistance. 418 is the first support point for me. It is trading at 435 so that gives me almost 15 points as check point on either side. Considering the swift this stock shows this range is pretty good to take a bet and keep a tight stop loss in place. For longs first exit sign is 450. Book partial profits there and if it keeps going up then just wait for the next resistance without buying more. For short keep building up until 450 is broken convincingly. Last three days no new high is made. That suggests that buying pressure is losing steam.
Be ready to move in at either direction. Get the entry and exit points ready and stop losses in place. It all depends on the next day. If it is seen making a new high then long if not then short.
