Jun 162009
 
Tata steel in fourth wave triangle

Tata steel in fourth wave triangle

Tata Steel has come a long way from its lows, and after a steep third wave rally that ran 300% of its first wave, the stock has corrected 23.6% as a fourth wave triangle.  Look out for any sharp break above the upper boundary of the triangle because that will signal the start of a fifth wave to reach 525-30. The only caveat is because we saw that the fourth wave is a complex pattern (suggesting a triangle) that could abruptly change ts pattern, we should be on our guard for a break below 415 again. Finally, because the third wave has already extended, the fifth wave will develop only to normal lengths, and it should be fairly easy to recognize a top as it forms. That should give us more trading opportunities later on.

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