NSE : TATA MOTORS LIMITED [ PRE-MATURE DOUBLE TOP PATTERN ]

·    PRE-MATURE DOUBLE TOP PATTERN

·         Stock pullbacks from its previous peak made at 418
·         FIRST PEAK/top is made around 28^th Feb, 2014 -4^th March, 2014 via bearish harami followed by spinning tops and black candles in the price range of 418.2 -420.7
·         SECOND PEAK /top is made via Bearish hanging man on 3^rd April, 2014 at 418, which is followed by long black candle, which opened at its & closed near its low
·         These peaks are month apart.
·         Trough is made on 20^th March, 2014.
·         However this pattern would qualify as a double top, if support near 378 is broken on a closing basis.
·         In case stock bounces off from its support, the whole said view will be negated and it is viewed it was a temporary setback in the existing trend and likely to resume its previous up-trend.
·         Indicators are on the sell side, returned from the overbought zone.
·         RSI is showing negative divergence.
·         MACD  is showing negative divergence.
·         Histograms are also turning down.
·         Stochastic has given negative crossover in the overbought zone
·         However currently stock is standing at its window support at 402.55 and also at up-slanting trendline.
·         In Yesterday’s session stock opened above the window support and rallied then faced resistance at 50% retracement of previous long black real body and turned down, tried  breaking  window’s support at 402.55 but managed to closed  above it.
·         30 day moving average is standing at 399.

The whole view be negated , in case stock went above levels 418-421.