Tech 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.
RED, BLUE and GREEN line already described on the chart.
Close above blue line in coming session may bring a confirmed pull back...minimum of 10 to 12 % can be expected from CMP 433.95
It is not a good time to be a share holder of IT companies. We have outlaid reasons for IT stock softness earlier which you can check in earlier posts. Especially someone secondary player like Tech Mahindra it is going to be really tough going forward. If it has something in it, then it is time to show now. Technical picture is already clouded for the stock...
NSE:TECHM ...Tech Mahindra Is under pressure due to BREXIT and Relative weakness in IT sector. Though the Quarterly results were fairly in line with analysts expectations, Sector weakness and BREXIT could lead TechM to lower levels.
Technically TEchM is in Multitimeframe bearish trend. I expect levels of 450 over next few months before any significant support...
As per my observation, the stock looks weak and so as IT looks weak too.
I believe Tech Mahindra is in its third correction wave, in which 5th impulse wave in progress as per the elliott wave theory.
Preferable Risk and Reward Ratio
