- June 16, 2009
- Posted by: Ramki Ramakrishnan
- Category: Indian Stocks Trading
Tata Steel has come a long way from its lows, and after a steep third wave rally that ran 300% of its first wave, the stock has corrected 23.6% as a fourth wave triangle. Look out for any sharp break above the upper boundary of the triangle because that will signal the start of a fifth wave to reach 525-30. The only caveat is because we saw that the fourth wave is a complex pattern (suggesting a triangle) that could abruptly change ts pattern, we should be on our guard for a break below 415 again. Finally, because the third wave has already extended, the fifth wave will develop only to normal lengths, and it should be fairly easy to recognize a top as it forms. That should give us more trading opportunities later on.