TCSTCS was definitely a surprise for its loyal investors even though it was having not so annoying quarterly results.
Now let’s focus on what’s next. I carefully went through the chart adding some important parameters. Let me share the findings with you.
On 26th Feb TCS closed 3.37% Down with a huge volume spike at 5.53M, RSI was 33.12.
On 9th July TCS closed 1.55% Down with a huge volume spike at 6.365M, RSI was 41.53
Today TCS closed 6.35% Down with volume at surprising 11.845M, RSI at 43.18
When I drew a trend line connecting the RSI’s it touches almost perfectly, the 14 day RSI and the trend line has been plotted below portion of the chart.
On 26th Feb the stock reversed upwards right away. But during 9th July the stock consolidated for 2 weeks and reversed upwards after RSI touched a low of 38.72 on closing basis.
Current scenario is TCS fell with a heavy volume, the low was made at Resistance acting as Support line (Mark the black horizontal line 3657), and RSI trend line indicates a support zone is here nearby. So there are two probabilities the stock may move upwards right away or after some consolidation, but this is definitely an accumulation zone.One can wait for reversal signs before starting to accumulate. I have tried to justify by using my minimum knowledge that why one should be still bullish on TCS.
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Chart & Analysis – ADARSH DEY
