Tata Consumers (TATACONSUM) is a stock which is trading in a range from time i.e. since Aug. 2021. Now its very near and approaching to its ATH. So what will happen next. Let’s discuss.
In monthly chart, the range can be clearly seen having strong support near 690 and resistance starts near 870. Last 3 monthly candles are green and this month candle hit the resistance. Now will it go up? Will it give a break-out? Well only market will be able to answer this. What we can do is, we can plan out strategy to trade in it.
In weekly chart, if we see the RSI, its indicated a clear range shift. If took support on 60 and going up which is a bullish sign.
In daily chart, we can see a small trendline (blue). And we can see that the stock already hit the resistance zone in June and fallen, took support on the trendline and moving up again.
Now we need to wait and watch for either a breakout (most probable) or a fallback again in the range. For breakout, we will wait for a good bullish candle to break the resistance zone and goes above 890. In that case our entry will be above 900 for long. In other scenario if it forms a good red candle, we will look for M pattern in smaller time frame (daily/hrly) and take short side entry accordingly. Note that short side entry will trigger only below 820. So plan your trade accordingly. Happy trading. 👍✌️
