Today’s pick is [stockquote]TATASTEEL[/stockquote]. The last year saw the stock trading in a 350 to 500 range and is currently trading around the same price.
The stock has been in a down-trend since February this year, with a support near the 350 levels and resistance around 470.
The GMMA chart is not suggesting any directional move. The short-term lines and long-term lines are too close to each other.
TATASTEEL has a historical volatility in the range of 0.3 to 0.8. The scrip’s volatility is currently in the middle range and hence should not be a concern to the traders.
Looking at these technicals a short-term hold is suggested. For the long-term outlook of the scrip a decisive breakout above the trend-line will suggest a change in the current down-trend.
After coming out with a positive result in Q3, U.S. Steel expects a global slowdown in the metal demand for the Q4. Will it be the same scenario for the TATASTEEL for the coming quarter as well?