Act like a lawyer in a courtroom where he searches for clues to make his case strong. Bearish Candlestick Pattern, 38.2% exact retracement & falling trendline makes our case strong for a downside move.
So let us play the role of a lawyer.
Let us proceed in the courtroom for hearings & proofs.
Clue 1- Candlestick Pattern We have bearish Engulfing Candle which engulfs prior candle from 442 highs in 4H chart (4 Hour Chart) So, 442 highs is the key level for next few sessions for Tech Mahindra.
My Lord - Such Patterns are explained in the bible book - Candlestick Analysis- by Steve Nison
Clue 2- Trendline We need 2 points of contact to draw a trendline & 3 point of contact to make it valid trendline. My Lord- So, I think this is 2nd clue which supports bearish view.
Clue 3- Fibonacci Retracement The fall from 491 to 413 has been touched exactly at 442 which is 38.2% retracement of the fall. My Lord- This was finally clue to support bearish view.
I know that you will decide in bears favour & most likely we will win the case. Let me know your decision. My Lord- Market- Do consider all the clues before giving your judgement.
What Next? In the Zone 405-410 - Wave-3 travels 361.8% of Wave-1 distance(515 to 488)- which itself divided into 5 waves.
Trading Strategy Strict Stops above 442 - we shall look for the final leg in the extended wave-3 in the zone 405-410 where it travels 361.8% of wave-1 distance.
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