After a decline of more than 40% year to date and 60% over two years, we've been eyeing Tata Motors Limited (TATAMOTORS.BO) on the long side for some mean reversion. For the past two months, the stock has been 澳洲幸运5官方开奖结果体彩网:range bound, but the re💧cent breakout has shifted the reward/risk in favor of the bulls over the short term.

Below is a nearly four-year daily chart of Tata Motors showing the steep declines noted above. With that said, prices broke below their 2016 lows in June and began 澳洲幸运5官方开奖结果体彩网:consolidating within a relatively tight range as  𓃲;diverged positively෴.

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Friday, prices were able to close back above the 2016 lows at roughly two-month highs, confirming the potential 澳洲幸运5官方开奖结果体彩网:failed breakout and bullish momentum 澳洲幸运5官方开奖结果体彩网:divergence we've been watching. This provides us with an opportunity to be long the stock if it's above 266 Indian rupees, with an upside target nearly 20% higher at its 200-day moving average and former support (3🌌26 rupees). (♕See also: Tata Motors: A Tale of Two Businesses.)

We like this type of setup because our risk is very well defined and the reward/risk is skewed in our favor. Additionally, we'll likely know if we're right or wrong here very quickly, as we did with our mean reversion trade in . , so it's important that🃏 we see follow-through shortly after getting confirmation.

For 🎶;, we've done a  to identify if ther🦄e are other potential opportunities where the reward/risk is skewed in our favor.

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Thanks for reading, and please if you have any ♋questions.