TataComm Views!!!

Tatacomm is a stock which is attracting a lot of interest now…What’s so interesting about the stock that has been languishing and has refused to participate in this run up. Well for starters read the fundamental arguments put forth by noted analyst A.K.Prabhakar (it was a pleasure to meet him in person) in his blog here! And as regards to the technical picture, let’s start with the weekly chart below;

From the chart above we can see that the shaded band 300/330 has been the sink or swim area from where this stock has always managed to bounce back in last of couple of years. Therefore to give it the benefit of doubt I feel this support zone will hold water! The MACD is beginning to turn up, and the RSI has made itself a lil double bottom, hinting for the price to take a pot shot at the falling 20 periods weekly MA and target 385/90. After that the next stop might be the 430/35 zone. Now move on to the Daily chart below;

A nice Double Bottom on the chart, as you can see above, followed by bullish divergence on both the indicators. Price is in a nice 60 point rectangle, therefore any breakout above 390 will give a target of 450, which is where incidentally the 200 periods daily MA is, and also the previous support now turn to resistance line approximately is! Ok! So far so good lets go a step below and see what the hourly is suggesting;

As you can see from the above chart we have a nice rounding bottom happening, a breakout out of the TL and the 200 periods hourly MA and now it looks like as its coming down to testing the breakout! The hourly looks a lil OB, therefore some caution is advised. For the very conservative, waiting for a dip to 355/50, is a buying opportunity, and for the aggressive one, I guess this is it!