The attached 4 hourly timeframe chart of TECHM has formed a bullishcandlestick pattern like “Morning star”(shown in a orange circular object), it is considered as a bullish reversal pattern of high reliability.Formation of long bullishcandlestick on Day 3 confirmed the pattern and shows that bulls are gaining strength over the bears.
Presently, the stock price is showing a formation of bearishharmonic type set-up and is making attempt to form the last leg (CD) which will complete the said pattern around Rs .461-463 levels. A decisive move above this hurdle could have a sharp positive impact on the stock price ahead.
We observe a strong overhead resistance of a downward sloping trendline (black line) around Rs .426 levels, Hence suggest to enter fresh longs above the these levels.
The overall chart structure and momentum pattern in Techm is showing a buy trade setup for near term. One may look to go for a long trade above 426-427, for a targets of Rs 463 with a stop loss placed just below levels of 405.