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We added Tata steel two months earlier also, when it was just started to move in trading range. Now, it breakout from that trading range in the end of march. Besides that trading range, it made many patterns within it.
It broke down a double top at 408 first in the end of December and started to take a downward move and took a support at 336. After that it started to move in trading range of 336 and 395.
During this trading range, it made two flat-bottomed descending triangle and broke down both of them successfully. First triangle broke down at 368 on 20 Feb and target of 345 was achieved successfully. The second triangle broke down at 344 on 7 March, but it failed to take the price more down and took the support at 336.
Now the stock is in strong upward momentum from 14th March, breakout the resistance level of 395 on 27 March and heading towards the level of 450.
Are we following the global correction?
Dow Jones industrial Average is testing its support level of 16,047 and passing through a correction. The index corrected 2.6% this month and if it breaks its support line,then it could see new lower values. But it is just an correction, the overall trend is still up.
The S&P500 is also getting through a correction and broke its primary support of 1,840. The index corrected 3.17% this month and could make new lower values. But the overall trend is still up.
The NIKKEI is testing its Major support level of 14,000 and could see new lower values if breaks this support. The index corrected 7.88% this month.
NIFTY also started to took correction from last two trading days and corrected 1.17% including today down move. The primary support for Nifty is 6650.
We even do not know whether Nifty is getting into a correction or it is just an choppy period. While all major international indices are getting through a correction since the start of month and corrected 2%-7%. Nifty was moving upward against the global correction, which was a good sign for the bulls.
Even if we are entering into an correction, then it should not be a big correction. Nifty could test its primary support level of 6650 but it is not sure it will break it down and enter into a major correction. The Nifty is outperforming global indices, correcting much less than other markets. This suggests that corrections may be minor dips or just choppy movements.