[Premium] Trade Of The Week

The market remains in an uptrend and sector rotation continues to buoy the major indices.

Today, we're looking at the next beneficiary of that rotation, Tata Chemicals.

Click on chart to enlarge view.

The stock is showing improving relative strength and is now breaking out of a 3-year base on an absolute basis. With momentum in a bullish regime and prices above a slightly upward-sloping 200-day moving average, we want to be buying this stock.

As long as prices are above multi-month resistance near 320, then we can look for a move towards our initial price objective at 420 and then the "measured move" target of this base near 470.

We'd expect these price objectives to be achieved within the next 2-4 months.

Thanks for reading and please let us know if you have any questions.

And if you're a Premium Member, be sure to check out our other weekly post, "Three Charts For The Week Ahead."

Allstarcharts Team