Symbol: Tech Mahindra (TECHM) Timeframe: Daily
Technical Analysis:
Since May 25th, the price of Tech Mahindra (TECHM) has been exhibiting a sideways price action, consolidating within a defined range. This period of consolidation can be seen as a sign of accumulation. The stock has formed clear support around 1015 Rs Peventing any substantial downward movement. Similarly, resistance has been established near 1149 Rs capping the upside potential for the time being.
The prolonged sideways movement suggests a build up of energy within the stock, hinting at a potential breakout in the near future. Traders and investors should keep Tech Mahindra on their radar for a potential bullish breakout.
Key Observations:
Sideways Price Action: Tech Mahindra has been trading within a range since May 25th, with limited upward or downward movement.
Support and Resistance Levels: Notable support has formed near 1015 while resistance is holding firm around 1149
Bullish Breakout Potential: The current sideways price action suggests that the stock is accumulating energy for a potential breakout to the upside.
Trading Strategy:
Given the possibility of a bullish breakout, traders can consider the following strategies:
Breakout Entry: Enter a long position once the price closes above the resistance level 1149 This would confirm the bullish breakout and potentially lead to further upward momentum.
Target Levels: Consider setting profit targets based on key resistance levels or by using technical indicators such as Fibonacci extensions or previous swing highs.
Disclaimer: This analysis is for informational purposes only and should not be considered as financial advice. Trading stocks involves risk, and it is important to conduct thorough research and analysis before making any investment decisions.
Technical Analysis:
Since May 25th, the price of Tech Mahindra (TECHM) has been exhibiting a sideways price action, consolidating within a defined range. This period of consolidation can be seen as a sign of accumulation. The stock has formed clear support around 1015 Rs Peventing any substantial downward movement. Similarly, resistance has been established near 1149 Rs capping the upside potential for the time being.
The prolonged sideways movement suggests a build up of energy within the stock, hinting at a potential breakout in the near future. Traders and investors should keep Tech Mahindra on their radar for a potential bullish breakout.
Key Observations:
Sideways Price Action: Tech Mahindra has been trading within a range since May 25th, with limited upward or downward movement.
Support and Resistance Levels: Notable support has formed near 1015 while resistance is holding firm around 1149
Bullish Breakout Potential: The current sideways price action suggests that the stock is accumulating energy for a potential breakout to the upside.
Trading Strategy:
Given the possibility of a bullish breakout, traders can consider the following strategies:
Breakout Entry: Enter a long position once the price closes above the resistance level 1149 This would confirm the bullish breakout and potentially lead to further upward momentum.
Target Levels: Consider setting profit targets based on key resistance levels or by using technical indicators such as Fibonacci extensions or previous swing highs.
Disclaimer: This analysis is for informational purposes only and should not be considered as financial advice. Trading stocks involves risk, and it is important to conduct thorough research and analysis before making any investment decisions.