At the start of the year: I wrote one post on how I see Tata Global as stock to watch in 2012. Six months have passed and stock has done nothing. Really? Stock has built a solid foundation for rally….and here’s how
It all started with this news
The impact: Tata Global stock broke out above 200 dma and rallied sharply from 100 to 125 in just less than 9 trading sessions. It did raise lots of hope but since then stock did nothing and just traded sideways to down. The market sentiment did not help either. The stock slowly drifted down to 200 dma and created lots of frustration on no follow through.
BUT the good news stock never broke the bullish structure of the stock and sustained above 200 dma.
Now comes the second boost to the stock.
The stock has reacted favorably and bounced from 105 to 115 in no time.
What does this mean?
The stock has done all the right things this year. It has built a solid foundation above 200 dma and fundamental developments are in place and it’s matter of time before real momentum commences and takes stock to much higher levels. It is a bullish journey worth taking even though start looks slow but there is no point complaining if slow start has been used to build solid foundation. Tata Global is still the stock to watch in 2012.
Please do your own due diligence before trading