Tata Steel Limited Stock Forecast
Explanation to Bollinger's Bands
Bollinger Bands was created by John Bollinger in the early 1980s, its purpose is to define price action relative to the assets highs and lows. This technical indicator is used to identify buy and sell signals and has proven very well in doing so.
Bollinger Bands consist of a set of three curves drawn in relation to securities prices. The middle band is a measure of the intermediate-term trend, usually a simple moving average, that serves as the base for the upper and lower bands. The interval between the upper and lower bands and the middle band is determined by volatility, typically the standard deviation of the same data that were used for the average. StockInvest.us uses Bollingers suggested 20 day average.
Middle Bollinger Band = 20-period simple moving average
Upper Bollinger Band = Middle Bollinger Band + 2 * 20-period standard deviation
Lower Bollinger Band = Middle Bollinger Band - 2 * 20-period standard deviation
BandWidth defines the current width of the band.
%b defines the current position within the band.
BandWidth = (Upper Bollinger Band - Lower Bollinger Band) / Middle Bollinger Band
%b = (Last - Lower Bollinger Band) / (Upper Bollinger Band - Lower Bollinger Band)
Live Samples:
Bottlenecks in bandwidth indicate an upcoming change. Break up through the moving average line or continuous movements above the moving average line indicate a break up, and vice versa.
Source: http://www.bollingerbands.com
Tata Steel Limited stock upgraded from Buy Candidate to Strong Buy Candidate after Friday trading session.
(Updated on May 17, 2024)
The Tata Steel Limited stock price gained 0.81% on the last trading day (Friday, 17th May 2024), rising from ₹165.90 to ₹167.25. It has now gained 6 days in a row. It is not often that stocks manage to gain so many days in a row, and falls for a day or two should be expected. During the last trading day the stock fluctuated 1.78% from a day low at ₹165.50 to a day high of ₹168.45. The price has risen in 8 of the last 10 days and is up by 0.48% over the past 2 weeks. Volume has increased on the last day along with the price, which is a positive technical sign, and, in total, 560 thousand more shares were traded than the day before. In total, 3 million shares were bought and sold for approximately ₹543.34 million.
The stock lies in the middle of a wide and strong rising trend in the short term and a further rise within the trend is signaled. Given the current short-term trend, the stock is expected to rise 17.91% during the next 3 months and, with a 90% probability hold a price between ₹188.72 and ₹210.03 at the end of this 3-month period.
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TATASTEEL.BO Signals & Forecast
The Tata Steel Limited stock holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at ₹164.56 and ₹163.04. A breakdown below any of these levels will issue sell signals. Volume is rising along with the price. This is considered to be a good technical signal. Some negative signals were issued as well, and these may have some influence on the near short-term development. A sell signal was issued from a pivot top point on Monday, May 06, 2024, and so far it has fallen -0.209%. Further fall is indicated until a new bottom pivot has been found. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD).
Support, Risk & Stop-loss for Tata Steel Limited stock
Tata Steel Limited finds support from accumulated volume at ₹163.10 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.
In general the stock tends to have very controlled movements and with good liquidity the risk is considered very low in this stock. During the last day, the stock moved ₹2.95 between high and low, or 1.78%. For the last week the stock has had daily average volatility of 2.52%.
Since the Tata Steel Limited has been rising for 6 days in a row, the risk over the next couple of days has increased. We don't expect a major reaction as the stock is in very good shape technically, and therefore hold a positive evaluation despite the very short term risk.
Our recommended stop-loss: ₹160.58 (-3.99%) (This stock has low daily movements and this gives low risk. There is a sell signal from a pivot top found 9 days ago.)
Trading Expectations (TATASTEEL.BO) For The Upcoming Trading Day Of Tuesday 21st
For the upcoming trading day on Tuesday, 21st we expect Tata Steel Limited to open at ₹167.07, and during the day (based on 14 day Average True Range), to move between ₹162.95 and ₹171.55, which gives a possible trading interval of +/-₹4.30 (+/-2.57%) up or down from last closing price. If Tata Steel Limited takes out the full calculated possible swing range there will be an estimated 5.14% move between the lowest and the highest trading price during the day.
Since the stock is closer to the resistance from accumulated volume at ₹167.35 (0.06%) than the support at ₹163.10 (2.48%), our systems don't find the trading risk/reward intra-day attractive and any bets should be held until the stock is closer to the support level.
Is Tata Steel Limited stock A Buy?
Tata Steel Limited holds several positive signals and is within a strong rising trend. As the old saying says, "Let the trend be your friend.'". We therefore consider it to be a good choice at these current levels and we are expecting further gains during the next 3 months. We have upgraded our analysis conclusion for this stock since the last evaluation from a Buy to a Strong Buy candidate.
Current score: 5.740 Strong Buy Candidate Upgraded
Predicted Opening Price for Tata Steel Limited of Tuesday, May 21, 2024
| Fair opening price May 21, 2024 | Current price |
|---|---|
| ₹167.07 ( 0.110%) | ₹167.25 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for TATASTEEL.BO
Fibonacci Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 170.02 | 1.65 % | |
| R2 | 168.89 | 0.98 % | ||
| R1 | 168.19 | 0.564 % | ||
| Current price: | 167.25 | |||
| Support | S1 | 165.94 | -0.783 % | |
| S2 | 165.24 | -1.20 % | ||
| S3 | 164.12 | -1.87 % |
Accumulated Volume Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 167.60 | 0.209 % | |
| R2 | 167.40 | 0.0897 % | ||
| R1 | 167.35 | 0.0598 % | ||
| Current price | 167.25 | |||
| Support | S1 | 163.10 | -2.48% | |
| S2 | 150.00 | -10.31% | ||
| S3 | 141.55 | -15.37% |
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