Technical Analysis Tata Steel

The stock

is currently going through a sharp correction after hitting a multi-year peak. Here is the breakdown of the current price action. Recently the stock surged well above ₹210 but has since crashed back down. It is currently sitting right on that old resistance line. In technical terms we are watching to see if Old Resistance becomes New Support. The recent candles are long and red downward showing that sellers are currently in control. The drop from ₹210 to ₹183 happened very quickly. The stock is at a make or break point. If it stays above ₹180 it could consolidate and move up again. If it closes significantly below ₹180 the recent breakout might be considered a Bull Trap. Immediate support ₹180. This is the floor. If this breaks the next major support visible on your chart is around ₹160. Immediate resistance ₹200. Psychologically and technically the stock needs to cross back above ₹200 to regain its bullish strength. For buyers it is risky to buy right now while the price is falling so fast. It is better to wait for a green signal a bullish reversal candle near the ₹180 support. For Holders as long as the price stays above the ₹180 the long-term structure is still okay. A drop below ₹180 would be a warning sign to exit or trim positions. Technical analysis is based on historical patterns and does not guarantee future results. Always use a Stop-Loss to manage your risk.