sacban89

TCS - Breakout Possible

Long
NSE:TCS   TATA CONSULTANCY S
1. After a Breakaway gap with huge volumes last year, the stock made a good upside move.
2. For the past few months, the stock is forming an ASCENDING TRIANGLE PATTERN.
3. There is resistance at 3350, which it is trying to break.
4. There is a breakout on Daily chart with good volume .
5. However, let it sustain the breakout on the weekly chart as well and wait for the weekly close above 3350. Otherwise, you may be trapped in a breakout failure.
6. The stop loss can be at the break of ascending trendline (Purple in colour).
7. The target can be equal to the height of the triangle which is 460 points. This is to be calculated from the resistance level which is 3350.

Also, note that the NIFTY IT is also making an upside move which should strengthen the move of individual IT stocks.

Target : 3350 + 460 = 3810 (3800 round level)
SL : At the break of Trendline
Buy: 3350-3400

Time period: This can be a medium term target as the stock moves steadily.

Disclaimer: This is purely an analysis for learning and sharing knowledge. This is NOT a buy/sell recommendation. Please do your own research and add value to it. Thank You.