Tata Steel Limited (TATASTEEL) Stock - Complete Technical Analysis - Oct 14, 2024

Tata Steel Technical Analysis: Is a Reversal Imminent Key Levels to Watch

Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Investing in stocks involves risks, and it's essential to conduct thorough research or consult with a financial advisor before making investment decisions. Today, Tata Steel is trading at 158.32, showing a significant movement influenced by recent bearish patterns. Notably, the formation of a Bearish Engulfing pattern and an Evening Star suggests potential downward pressure. The stock is currently around 14.24% below its 52-week high of 184.6, while also being 38.15% above its 52-week low of 114.6.

In terms of support and resistance, immediate resistance is observed around the recent high of 163.38, with further resistance likely at the pivot points around 162.12. On the downside, support can be found near 154.05, with additional support levels potentially at 139.56 and 117.0.

From an indicator perspective, the Average Directional Index (ADX) at 21.32 indicates a weak trend, which could result in choppy price action. The Relative Strength Index (RSI) at 48.05 is near neutral territory, suggesting no strong momentum in either direction. However, the Stochastic oscillator shows oversold conditions, which could lead to a short-term rebound if buying interest resumes.

Volatility remains a concern, as highlighted by the Average True Range (ATR) levels, suggesting price swings are likely. The presence of gaps and sudden price drops, particularly evident from the last few trading sessions, indicates increased trader caution and the need for careful monitoring.

In summary, traders should be cautious of further downside, watching closely for a breach of support at 154.05, while potential recovery could face resistance at 162.12. Keeping an eye on volume and broader market trends will be crucial in navigating this volatile environment.