[Premium] Trade Of The Week

JC Parets
March 1, 2022

The market has been a mess and off late the geopolitical turmoil has been playing havoc as well. Metals have shown strength over the past week and that has been our area of focus. This week's long trade comes from the Metals segment.

Let's take a look at the trade for this week!

Tata steel is back up above its crucial support level as metals display strength in a sideways market. The stock closed above the risk management/support level successfully on the monthly chart. Earlier in 2021 when the metals were rallying, we saw the price move out of a 14-year base! While the follow-through was decent, the eventual correction led to negative sentiment in the sector as a whole.

With the price and indicator showing up in the strong parts of the chart, we may see a continued outperformance coming through from such names.

On a relative basis too, the stock is trading near its 5-month highs.

We are bullish above the risk management level of 1,050, with a target close to 1,610.

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

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