NSE TECHM: Multiple Timeframe Analysis

I’m using 3 different chart patterns to find out NSE Tech Mahindra stock trend for upcoming days.

• Monthly Chart: Price Action
• Weekly Chart: Head and Shoulders Pattern
• Daily Timeframe Chart: Ellott Wave Theory

I. Monthly Timeframe Chart – Price Action

After making an all-time high(ATH) in 1838, prices have started collapsing to correct the previous move.
The fair value area has given two resistance on the upper band, and four supports on the lower band of the channel. Excess is showing that sellers are very aggressive with their inconvenience levels.

Key Level clusters:
1) 995 Level

•  Fibonacci level of 61.8%
•  A lower band of the parallel channel
•  Monthly support level

2) 764 Level

• Fibonacci level of 78.6%
• Monthly support level at 747

These are Strong reversal zones for tech Mahindra. If the price takes support at this level, we can see an impulsive move in upward direction. Breakout of the channel will lead to 2nd key-level and more bearish.

II. Weekly Timeframe Chart – Head and Shoulder Pattern

The weekly timeframe gives information about the bearish atmosphere. Price has formed head & shoulders on the weekly timeframe.

Supply pressure has broken down the neckline with a retest at 1302. H & S target measurement says that price can fall up to 955.
(Base scale: distance from head to neckline)

III. Daily Timeframe Chart – Elliott Wave Theory

After creating a high of 1838, the price has to fall for the corrective phase. Price has completed the corrective wave (B) and started occurring wave (C) of the correction phase.
We are clueless about trend reversal because the price is out of the parallel channel.

If the price sustains below the lower band of the parallel channel. Traders can trade for the following targets: 1064 – 1006 – 995.

Please note that 955 is our monthly support level, so we can also initiate the buy position when the price sustains above it.
The entrance of price into the parallel channel may lead short-term bullish perspective.

 I am not admire falling knives. If the price enters the parallel channel, traders can buy for the following targets: 1180 – 1234 – 1299. Trend change is unacceptable until the breakout of high of wave 4 of lower degree.

I will upload further information soon.

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