TCS looks like one of those stocks which seems to have recovered very fast from the effect of pandemic situation and return to its previous trends. Before pandemic TCS was forming an ascending triangle which is a bullish continuation pattern with resistance at 2290. The pandemic has crashed the stock by around 20%. But it took only 4 months for the stock to return to its trend with same resistance and ascending trend line.
Yesterday the stock closed at 2157 which surprisingly has been a crucial level in the earlier trend. Quite a few times this level served as support for double tops, triple tops and as resistance for bottom patterns. So it is not surprising for current trend to stop at this level. Last week has been a bearish week for TCS ending with a hammer. In my opinion a short term bullish uptrend might come or consolidation for the recent bull run might happen. I could be wrong. But at least there might be break out from the ascending triangle pattern in the longer future.
PS: Please correct me if any technical parameters are showing otherwise or if there is any flaw in my limited analysis.
Yesterday the stock closed at 2157 which surprisingly has been a crucial level in the earlier trend. Quite a few times this level served as support for double tops, triple tops and as resistance for bottom patterns. So it is not surprising for current trend to stop at this level. Last week has been a bearish week for TCS ending with a hammer. In my opinion a short term bullish uptrend might come or consolidation for the recent bull run might happen. I could be wrong. But at least there might be break out from the ascending triangle pattern in the longer future.
PS: Please correct me if any technical parameters are showing otherwise or if there is any flaw in my limited analysis.