Jul 8, 2015
Tatamotors daily chart possess bullish crab pattern with an extended final leg(CD).
BC 3.618 projection is quite close to the most important 1.618 XA extension, thus charts has complementing PRZ AREA .
Extreme BC 3.618 projection comes at 393.36 and 1.618 XA extension is at 379.81. Usually XA leg defines the lower range of PRZ AREA
Price action usually becomes extreme as the pattern approaches it completion point . Extreme price action is quite visible on tata motors chart.
So what to do now :
- It is best to wait for the price to test 1.618 XA extension.
- Wait for the stock to get stabilized after testing 1.618 extension.
- Look for reversal signal near or at PRZ AREA.
- If tail closes , extreme ranges , gaping down, price action are seen near prz area, further weakness in the stock can be seen.
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