The above shown chart reflects the Moving Average pattern of ‘TATA MOTORS LTD’. The Moving Average pattern works only when there is either an upward movement or a downward movement in price of the stock. It can be observed clearly that there is downward movement in the price of the stock, and therefore can be concluded as a trending pattern and not as sideways movement. Also based on the moving average line the respective entry price, stop loss and the target price have been appropriately calculated and shown in the above chart. Since the there is a downward trend in the price, the position to be adopted by the trader is sell. In this pattern it can also be noticed that the prices are attracted and repelled from the average prices along with the respective resistance and support levels of the stock.
, , Moving Average
