Tata Steel at 9 Months support level with H and S formation
Observations:
1. Currently at a strong support level. Previously support taken at this level 4 times in the past 9 months.
2. Additionally support is also given by 55MA coinciding with the 9M support level
3. Inverted H&S is formed with 9 months span
4. Falling wedge with lower low formation with 7 months span
5. Current support level is also a Fibonacci level of 0.618 in the swing from Mar 2020 - Aug 2021.
6. There were reversal sign at this support level with a formation of doji candle, but this time a strong bearish candle is formed.
The current level being a very strong support level should help for reversal. As there is an indication of weakness, if the current level is broken strongly supported with an global event, major downside can be expected.
1. Currently at a strong support level. Previously support taken at this level 4 times in the past 9 months.
2. Additionally support is also given by 55MA coinciding with the 9M support level
3. Inverted H&S is formed with 9 months span
4. Falling wedge with lower low formation with 7 months span
5. Current support level is also a Fibonacci level of 0.618 in the swing from Mar 2020 - Aug 2021.
6. There were reversal sign at this support level with a formation of doji candle, but this time a strong bearish candle is formed.
The current level being a very strong support level should help for reversal. As there is an indication of weakness, if the current level is broken strongly supported with an global event, major downside can be expected.