TATACHEMICALS – CUP & HANDLE
A long accumulation can be seen in tata chemicals from Aug’13 to Oct’13 and it was making a rounding bottom formation which is also a bullish signal. The cup neckline is around 285-286 level and it gave a breakout signal on 4th March’14 with high volume (can be seen in circled candle and volume also)
It is fair enough chances that this stock may go upto 325+ level in couple of days/weeks and secondly it is also a resistance zone for this stock.
But risk reward point of view it is good bet to take and one should take position in this stock. We have to watch the movement of stock in coming days, since it break the level today only.
Keep a SL of breakout candle low and long the stock for another 40-50 points.
TATACHEMICALS – CUP & HANDLE
