Tata Steel Share Price Target 2023 : A Comprehensive Analysis and Projections

Discover the potential of Tata Steel share price target as we delve into the analysis of its weekly chart. This comprehensive examination focuses on the presence of an intriguing inverse head and shoulders pattern, suggesting a bullish trend reversal. With the current market price (CMP) standing at 115, this article provides valuable insights into the implications of the pattern and potential price targets. Traders and investors are encouraged to closely monitor Tata Steel for potential breakout opportunities. Read on to explore the details of this compelling analysis.

 

Inverse Head and Shoulders Pattern:

The inverse head and shoulders pattern is a reliable bullish reversal pattern observed in technical analysis. It consists of three key elements: a head, two shoulders, and a neckline. The head forms a lower low, while the shoulders create higher lows. The neckline connects the highs of the two shoulders. In Tata Steel’s case, the pattern has already formed, indicating a potential shift from bearish to bullish sentiment.

Breakout Confirmation:

For the pattern to be confirmed, Tata Steel needs to break out above the neckline. This breakout should ideally be accompanied by increased trading volume, signaling strong buying pressure. Traders often wait for such confirmation before taking a bullish position.

Fibonacci Key Levels

Fibonacci retracement levels, derived from the Fibonacci sequence, are widely used in technical analysis as These levels serve as crucial reference points. In the case of Tata Steel, the 50% Fibonacci level stands at 118, while the 61.8% Fibonacci level is positioned at 126.

Point of Control (POC)

The Point of Control (POC) is a significant concept in market profile analysis. It represents the price level at which the highest volume of trading activity has occurred. For Tata Steel, the current trading above the POC level of 106 suggests that this price point has played a role in establishing price equilibrium. Traders often view the POC as a key reference level, as it can provide insights into market sentiment and potential areas of price consolidation.

Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD)

Relative Strength Index (RSI) is trading above the reference line, indicating bullish momentum in the stock. Moreover, a bullish crossover in the Moving Average Convergence Divergence (MACD) suggests a buy signal, further supporting the positive outlook for Tata Steel. These technical indicators signal that the stock may continue its upward trajectory, reinforcing the potential for a bullish trend in the near future.

Tata steel 14 july 2023

Tata Steel Share Price Target 2023:

If Tata Steel successfully breaks out from the neckline with volume support, it is likely to experience significant upward momentum. Based on the pattern’s measurement, a price target of 150 can be projected. This means that if the breakout occurs, the stock may rise to the 150 level. Furthermore, if the bullish momentum continues, a second target of 190 can be anticipated.

Monitoring Tata Steel:

Given the potential bullish breakout, it is crucial for traders and investors to closely monitor Tata Steel’s price action. Keeping this counter on the radar can provide an opportunity to capitalize on potential breakout stocks. By observing the volume, price movement, and the confirmation of the pattern, one can make informed trading decisions.

Conclusion:

Tata Steel’s weekly chart reveals an inverse head and shoulders pattern, indicating a bullish trend reversal if the stock breaks out from the neckline. Traders and investors should watch for a breakout with volume support as it may lead to price targets of 150 and 190. However, it is important to remember that technical analysis is not foolproof and should be complemented with other forms of analysis and risk management techniques.

You may also be interested in viewing the technical analysis and share price target for Wipro

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