A descending triangle with an over valued price is a deadly combo. Short your stocks would be the ideal move right now and book profits. Fresh entry can be made only when it bounces off 799 levels. The momentum is fading and the volumes are also declining.
It is having an uncanny resemblance with BTC USDT chart doing a saw tooth pattern.
How did you reached out to the conclusion that the price is overvalued? Please stop misguiding
daerontrading
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@shashankdps29, first of all thanks for commenting and for your valuable opinion. I am not guiding or misguiding anyone. I am doing my own analysis and posting it. I am not a financial advisor and none of this is financial advisor and only for educational purposes.
Having said that, the stock has been on a rising path even though few things were going wrong. The Net cash flow has decreased from 4325 to (-) 2141 between March 2019-2020. Net profit droped from 3977 to 1111 between December 2020 and March 2021. There is some increase in liabilities from 82k to 86k. PE ratio of around 30 which higher than the median of technology sector of 23.
That was the fundamental analysis. Coming to the technical analysis side, you can clearly see the RSI at the top and hence it's overbought. An overbought share is basically an overvalued one.
I hope you have your figures and chart analysis to support your argument. No one can predict the market so we can only let it unfold in the coming days. I am available on my telegram channel t.me/daerontrading for further queries
shashankdps29
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@daerontrading, I am sorry.I see the rsi hovering around at 55. In a bullish trend 40 is the support and 80 is the resistance and that alone doesn't decides whether the stock is overbought or oversold
daerontrading
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@shashankdps29, The problem I feel is that you're watching a single time frame. Look at the monthly RSI and you'll know.
shashankdps29
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@daerontrading, bro the monthy rsa is at around 72, again as I said 80 is the resistance and also rsi alone Cannot be an indicator of overbought or oversold.
S_Axelrod
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@daerontrading, Maybe your're right on the fundamental side,but technical is all wrong,RSI can mislead you if you don't go deep,there are lot of stocks that are making higher highs,higher lows,they trade around 70-80 rsi levels,but you have to take confirmation,look at how the sector is doing,look at how peers are doing,use more parameters to take confirmation&then come to conclusion.Q4 was bad,but it was bad for IT as whole
daerontrading
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@shashankdps29 Who said I was relying on RSI only? Did you read the fundamental analysis also?
shashankdps29
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@daerontrading, bro fundamental analysis is taken into consideration for long period not for a quarter. Btw I hope you are keeping a close vigile on hcl tech price today.
daerontrading
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@shashankdps29, Obviously I am. You're absolutely right. But common sense states that you need to take in latest financials if you want to get the right entry price in a stock, you need to look at recent figures. You can check various sites to see if the share is over priced or not.
S_Axelrod
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@daerontrading, Yes i did& you are right as i said above