Tata Steel: Elliott Wave Cycle

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 Tata Steel daily chart


Tata Steel is moving in a higher highs and higher lows which is a positive sign and can continue to do so once the correction which is ongoing will complete. The intermediate trend is negative as prices are correcting but the longer time frame is positive.

There are also high chances that the longer time frame change to negative from positive, only if it breaks the important support of 750 levels. As of now the focus will be the minor correction which is ongoing and can move down till 1000 levels over short to medium term.

As per wave theory, prices are moving in correction pattern after forming wave 3. This correction pattern probably introduced wave x, converting it into complex correction (a-b-c-x-a-b-c). If wave x is formed at 1258, then prices are all set to plunge till 1000 levels.

On a longer time frame I am opening two scenarios

Scenario 1: Prices are moving in impulse pattern where wave 1, wave 2 and wave 3 is over after that prices are moving in wave 4 in complex correction. If this correction ends above 750, the stock can move back up in form of wave 5.

Scenario 2: If the ongoing correction continues to retrace deeper and break crucial support of 750 levels then the entire up move will eventually be (a-b-c). If this scenario unfolds, brace yourself for massive selling.

The summation is Tata Steel is all set to plunge till 1000 levels over short term to medium term. Failure to protect the level of 750 will make this stock falter aggressively.


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