Technical Tip - April 12th, 07

The daily candlestick chart of Tata Steel Futs shows a rally from Rs.431 to Rs.519 in 6 days. Resistance is pegged at Rs.520-525 (trendline in orange). The short term oscillators have reached overbought zone, hence one can expect profit taking at current levels. High risk traders can buy Tata Steel 510 PA in small lots around Rs.12 as well as in declines at Rs.9.50 with a strict stop loss below Rs.6.75 in close for a target of Rs.23-25 in the next 7-8 trading sessions.