TCS made a Head and Shoulder pattern on its daily chart. It made the top with a close at ₹ 2567.50. The neckline came at ₹ 2405.10. TCS broke the neckline today with a long red candle and closed 2.7% down. Also the Chaikin Money Flow indicator is in negative territory near its lower range. This suggest a selling pressure on the stock.
RSI started forming divergence since April. Gold taking support at 1200 and bounced back. Now as it broke that support, it will act as a resistance and may test it again. Next major support is at around 1050. So, Sell Gold at around 1195, while it goes back to test 1200 for a target of 1050. Close position if it moves back above 1200 and sustains.
Long gold at current price (1218) with a stoploss below 1200, which is Triangle base and mid-term support ( Gold has bounced back twice at this level. Also there are two price & RSI divergences as shown on the chat by blue and red line. Also lower low made yesterday is within Bollinger Band's lower band while the earlier low was outside it. It signals a turn back.