Tata Motors Stock Analysis- 25Feb2020

Tata Motors stock is very bearish, and its following a head and shoulders pattern on the downside, with likely target of 125, while the current price is 150. The stock has been correcting from 200, with a bit of consolidation at 170 level, before fresh downmove.

The 50 day moving avg is also curving downwards, so it will need several days or weeks to get back any positive direction again. Tata Motors stock has failed many times to use the good set ups the stock had, which means, fundamental weakness is significant.

The latest coronavirus impact on Chinese economy will further impact Tata Motors. sales were already weak, and they may get weaker.

Investors should avoid Tata Motors stock and no new investment should be made in the stock at current levels. There’s nothing here! Plus the stock movements are very deceptive. A clean upside is possible only above 182. Traders can trade long or short in Tata Motors, and for the last 2 years, the short trade has been dominant.

Just see the above hourly chart. The stock has fallen from 184 to 150 within Feb 2020! There’s no investment case at all when a stock loses so much ground so fast.

Tata Motors management needs to take urgent action to save this company and rebuild it.

 

 

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