*Tata Motors (Rs 294.3): Sell * **
** ** ** ** ** ** ** We recommend a ‘sell’ in Tata Motors from a short-term trading perspective. It is apparent from the charts of Tata Motors that it was on an intermediate-term uptrend between early February and early June (from Rs 126 to Rs 403). However, after encountering long-term resistance at Rs 400, the stock reversed direction. A negative divergence displayed in the daily relative strength index (RSI) triggers this reversal. Since then, the stock has been on a medium-term down trend. Moreover, the stock formed a head and shoulders pattern, spanning between late May and late June. On June 29, the stock conclusively broke out of this pattern by diving 8 per cent, accompanied with high volume. The stock is trading way below its 21 and 50-day moving averages. A downward flag pattern is also visible in this stock. The daily RSI is on the brink of entering the bearish zone and the weekly RSI is declining in the neutral region. Our short-term outlook is bearish on the stock. We anticipate it to decline further until it hits our price target of Rs 264 in the approaching trading sessions. Traders with a short-term perspective can sell the stock, maintaining a stop-loss at Rs 309. Yoganand D http://www.thehindubusinessline.com/2009/07/03/stories/2009070351851200.htm --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en -~----------~----~----~----~------~----~------~--~---
