TECHM has formed a clear Head and Shoulders pattern as depicted in the chart image. The neckline around 1350 is broken conclusively. I'm not a great believer of H&S always achieving targets but technically speaking, TECHM is a short with SL at recent swing high of 1300. The first target would be at Gap support line around 1163 which if & when broken should see TECHM dipping to 1026 levels which is approximately equal to the height of the Head from the neckline. IT sector seems to be taking quite a hit recently. Nasdaq has plunged heavily in the USA also. Let's see how all this pans out eventually. Of course, this analysis (and H&S pattern) will be negated once TECHM starts trading above 1350 levels comfortably on closing basis.
The market is supreme. This is for educational purposes only and not to be treated as a recommendation to short TECHM. I'm not advocating bottom fishing either.
The market is supreme. This is for educational purposes only and not to be treated as a recommendation to short TECHM. I'm not advocating bottom fishing either.
Comment:
Today is TECHM result. The market opening cues are positive and it is certainly oversold so TECHM moves will be interesting to watch.
Comment:
TECHM is comfortably below 1163 gap support and well on its way to the tech target of 1026. Break of 1000 surely means more pain in this share and opens it up for deeper downside targets. 1163 now becomes a significant resistance.
Comment:
Comment:
TECHM hit 1115 on Daily Trend Line. Gap bottom at 1130 approx will also act as resistance. Next Res at 1163 still stands. Let's see how high it bounces. The medium term bearish view is still intact.
Trade closed manually:
TECHM hit a low of 1045 so didn't quite make it to our target of 1026 but nonetheless it was a good ride. As I write this it has hit and crossed 1063 res line, so we close this trade now.
Trade closed manually:
Guess I should have had more faith in my chart reading. Today TECHM hits our target finally. Jai ho!