YoY: Tata Motors

Below are the projections for Tata Motors based on the technical price change on a Year-over-Year (YoY) basis.

Year-over-Year Review

In the latest run up for Tata Motors, from the March 2020 low, the price of the shares have increased as much as +368% before peaking on a YoY basis.  This does not mean that the shares have run out of momentum to the upside.  Instead, it only means that the pace is not going to be as quick in the last year.

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In the last comparable YoY period, from the February 17, 2009 low to the March 17, 2010 peak, Tata Motors increased approximately +499%.  After March 17, 2010, Tata Motors rate of increase declined.  This means that the share price continued to move higher just not at the same parabolic rate (green dashed line) as seen in the February 2009 to March 2010 period.

Ultimately, as the share price got to the peak, around December 10, 2010, the average rate of increase, although positive, was being brought lower and finally to a negative YoY level (red box).  This resulted in a decline of nearly -50% in Tata Motors from December 2010 to August 2011.

If the current run is comparable to the 2009-2010 run, then we could see a new high at approximately 511-600.  A decline in the YoY rate below +100% would mean that the shares have peaked and are in for a -30% to -50% decline from the new established peak in the stock price.

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