rishiguy

TCS: Rising wedge breakdown?

Short
NSE:TCS   TATA CONSULTANCY S
A decently medium term upward trendline originating from November 2020 has recently been broken by TCS . In fact, it seems to have started respecting recently formed downward trendline. After the recent pullback to the trendline and the averages, it is seeing the beginning of another bearish leg downwards.
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The pattern which has formed resembles a rising wedge and price seems to be breaking down from it. The bearish volume on the latest bar is also above average. It is possible that the downward momentum may continue further for some time.

The 20 and the 50 EMA which act as support during an uptrend also seem to be reversing their roles. They are exactly from where price is reacting to the downside, so they may be turning into resistance.
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Price could see a correction to the round figure level of about 3000. A positional short could be initiated if price sustains below the "SHORT BELOW" level for 15 minutes.

SHORT BELOW: 3162
STOP LOSS: 3223
TARGET 1: 3106
TARGET 2: 3045
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Plan your trade and manage risk properly.

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Comment: Trade entry not triggered yet.