Testing Key Support with Bearish Momentum

Tata Power is consolidating between 370 INR (support) and 470 INR (resistance). The MACD shows bearish momentum with a negative crossover and declining histogram. If 370 INR breaks, the next major support lies at 336 INR.

The weekly chart of Tata Power indicates a consolidation phase, with the stock trading between 370 INR (support) and 470 INR (resistance). Currently, the price is testing the S1 Fibonacci level (~370 INR), a critical support zone. The following are key observations:

Key Observations:
MACD Indicator:
A bearish crossover is evident, with the MACD line below the signal line.
The histogram is negative and declining, signaling strong bearish momentum.
Support and Resistance Levels:

Current Support: Immediate support is visible near 370 INR (S1 level).
Further Downside: If 370 INR breaks, the next critical support level lies around 336 INR (S2 Fibonacci level).
Resistance: The stock faces resistance near 470 INR (R1 level).
Price Action:

The stock is in a downward trend after failing to sustain above its range near 470 INR.
A potential breakdown below 370 INR could lead to further bearish action toward 336 INR, a strong historical support.
Possible Scenarios:
Bearish Continuation:

A breakdown below 370 INR would confirm bearish sentiment, with the next support at 336 INR.
Traders should watch for strong bearish candles to confirm this move.
Reversal Potential:

If the price consolidates or forms reversal patterns like a hammer or bullish engulfing near 370 INR or 336 INR, it could indicate a potential recovery toward the upper range.
Conclusion: Tata Power is currently at a crucial support zone. A breakdown could lead to further downside, with the next key level at 336 INR. However, any signs of a reversal could present an opportunity for recovery. Traders and investors should monitor price action closely near these levels.