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shaleenbansal
Jul 29, 2020 6:09 AM

Fundamentals and Technicals at fight. TCS 

TATA CONSULTANCY SNSE

Description

Looks like there is a bit of selling in the stock today following a massive upmove yesterday.
RSI is showing a clear divergence with the price which means momentum is not favoring the bulls in here.
As I said earlier, any investor would bet on IT right now(Fundamentals are strong) but traders look at charts and that's it.

Divergence in RSI and a strong resistance. Looks like Bulls will take a halt for some time.
There is a clear and strong uptrend. Stock will sooner and later pick up but for the short term, Bears will try their hands on it.

There is a lot of trading opportunity in here. Keep a track of #TCS. Sharing my previous idea down below for reference.

Comment

Stock is holding up quite firmly. As I mentioned earlier, there is going to be exhaustion in the rally and past 3 weeks we are seeing a neutral price action on TCS. The price is nearing the trend line. Chart is vouching for a up move however market sentiment is turning neutral from bullish. There are many factors at play but I am of the opinion that this will take another leg up before sellers could get their share of pie.

Comment

Decline is volume and reduced volatility is signalling big move coming. I am biased towards upside. Trading opportunity about to trigger.
Follow your own analysis while trading.
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