TechMThe stock is in Bulls control. Have a look at the candles. Red candles are indications of profit booking done by bulls. Then they enter long trades on small correction-- correction of just 4-5 sessions. I have drawn a probable Shark patter and the same has not been effective. This too points out to bullish stance in this counter.
TECHM trade ideas
Tech Mahindra (NSE): Correction in uptrendThe long-term trend is completely intact and unchallenged. However, on the near term the outlook is a bit tiresome; bearish divergence and the lack of significant new highs suggests buyers are exhausted and a correction is around the corner. Tighten stops on existing longs or cover all together. New buying can be done if/once a deeper correction has occurred and prices set a new higher base. The area around 550<>570 would be ideal for such a base.
Primary trend: positive
Outlook: correction in uptrend, moderately negative
Strategy: cover/protect longs and re-enter after correction
Support: 571.70 / 537.50 / 506.10
Resistance: 532.10 / 665
Outlook cancelled/neutralized: n/a
NSE:TECHM
Trendline Breakout - Tech MahindraTech Mahindra has given trendline breakout on weekly charts with rising volumes. ADX has turn positive on weekly charts. Stock has closed above all short term moving averages on weekly as well as daily charts.
One can initiate long position around 495-505 levels with stop loss below 449 on closing basis for target of 564-582 in next 8-10 weeks.