Tata Motor Diagonal Triangle in play? Decent RR
A diagonal Triangle pattern may be on verge of completion in Tata Motors. Diagonal Pattern is a reversal pattern that leads to prices completely reversing the distance traveled by the pattern. The pattern has been traced between 192 and 163.5. We may expect the prices to move back to 192 level once the pattern completes and prices breakout.
The time taken to reverse the pattern is usually 1/3rd to 2/3rd times the time taken to trace the pattern. Based on this we may expect this reversal to be complete between June 17-21.
A break below 159 may invalidate the pattern.
It may be a good idea to buy Tata Motors around 165-166, with stop loss of 159 for target 192.
Conservative traders may wait for 170 to break before entering the trade, the stop can be placed below the low created before the break of 170 level.
The time taken to reverse the pattern is usually 1/3rd to 2/3rd times the time taken to trace the pattern. Based on this we may expect this reversal to be complete between June 17-21.
A break below 159 may invalidate the pattern.
It may be a good idea to buy Tata Motors around 165-166, with stop loss of 159 for target 192.
Conservative traders may wait for 170 to break before entering the trade, the stop can be placed below the low created before the break of 170 level.