This update on Tata Steel is in continuation to the previous 2 updates. I have analysed the multiple time charts with Elliott waves principle and tried to explain what to expect in future.
Hourly Chart: If this was C wave, and correction was to end with this (read previous post) , this volume spike which is even bigger than any of the the impulse waves should not have happened. The Volumes at ending c wave corrections become low and not increase like it happened here. Refer to next 2 higher time frame charts with this post.
Weekly Chart: The Large decline on a larger time frame tempted to assess what was happening here. The Upmove clearly shows 3 subdivisions. 3 waves up suggesting, that present downside may not be over. Which forces to analyse even a longer time frame chart.
Monthly Chart: On Larger time frame I found Triangle in action. Its E wave on the down side is going on. This the picture much clear, on the larger time frame this is a 4th wave correction in form of triangle from 2007 to present and since its in the last phase of correction E wave it must start moving up. also C wave = 62% of A, and D wave = 62% of B. Ideally, E wave must be 62% of C which may bring it to 248 levels in coming 5 – 9 months. To me it seems a time to accumulate at every 20-25 Rs fall for long term investors. Again, its just my view. I felt to update this as a responsibility to bring the larger picture coz in earlier post it seemed a set up for going long is getting ready, it may or may not go up but coz of the risk and reward comparison, I will stay away from it as I am a swing trader.
“This is just a personal view and neither a recommendation nor a tip nor an advice for any trade”