Tata Steel: Ride The Trend
The stock has rallied over 7 percent on July 29th in the July F&O series, Tata Steel Ltd gained over 30 percent. On Thursday, the stock opened with a gap up and quickly surpassed Rs. 1380 resistance mark with strong volume activity.
Post intraday breakout, it was trading above resistance level throughout the day which is broadly positive for the stock. On the daily and weekly time frame, the stock has formed a strong price volume breakout continuation pattern.
The texture of the pattern suggests that the breakout action will continue in the near future, if the stock succeeds to trade above Rs. 1380 level.
For the swing traders, Rs.1380 should be the sacrosanct level, and if the stock trades above the same then we can expect the uptrend to continue up to Rs.1501-1550.