AdhigamaTrading

TCS is showing signs of bearishness

NSE:TCS   TATA CONSULTANCY S
TCS is showing signs of bearishness..

Reasons/Traits :
Ascending triangle pattern breakout seems reached the target (For this pattern targets usually will be the width of current triangle pattern as shown ~16%)
• Daily Trend far away from 200 EMA
• Uptrend is in pause mode
Bearish Abandoned Baby pattern (last 3 candles) formation seen (very rarely this kind of pattern is seen indicating chances of downtrend)
Doji is formed at the top of the uptrend (Trend uncertainty)
Bearish Engulfing pattern is seen (chances of downtrend)
Volume is decreasing
RSI , Stoch and MACD in overbought zone
ADX is 53 (indicating very strong trend)
• Fib level retracement (from 25th Jun) crossed 2.618 levels and last closing candle is exactly at 2.618
• Current uptrend (from 28th Jul) retracement need to happen for a healthy uptrend

What can happen next :
Scenario 1 : Price lower than 3808 leads to 3700 to complete retracement of 0.236 levels and move up for a strong uptrend. It can also make a higher low (for the current wave uptrend) till 0.5 or 0.618 levels before moving up.
Scenario 2 : Price going up above 3877 can test 3.618 levels (4080)

3350-3380 levels is very strong support zone . Let’s see..

Disclaimer : This analysis is only for educational purpose and not be considered as any trading idea/tip. Please consult your financial advisor before you take any trade and we are no way responsible for your profits/losses. Thank you!
Comment: Consolidation phase, 2.618 upside is giving a good support so far
Comment: touched 0.5 retracement levels today