8 Feb 2021 ● 06:11 AM
Tata Motors has made a higher high than January but it would not change the expectation that the 5th wave is extended and when it completes a consolidation should follow. Later we may decide that this is only wave 1 of 5 and the next decline is only wave 2 of 5. The daily charts show heavy volume and a negative divergence in the momentum indicator both of which are late stages indications for this rally. It can also be argued that this move is not over to literally breaks below the 20-day moving average and can keep on extending. The 20-day moving averages at 277 and should hold on a closing basis. Basically, the stock is a place where no opinion is worth it. Sometimes it is better to say 'I don't know' how this will end. You are either trailing longs till it ends or waiting for the next opportunity when it shows up.