Tata Consultancy Services Limited (TCS) Stock - Complete Technical Analysis - Sep 16, 2024

TCS Stock Analysis: Bullish Trend or Market Indecision Key Support & Resistance Levels

Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Investing in stocks involves risks, and it's essential to conduct thorough research or consult with a financial advisor before making investment decisions.

Today, we're diving into the technical analysis of Tata Consultancy Services Limited (TCS), a leading player in the IT sector.

Currently, TCS is trading at 4,513, just 1.72% below its 52-week high of 4,592.25 and 36.31% above its 52-week low of 3,311. This indicates strong overall performance with notable volatility.

Support and Resistance Levels:

Immediate Support: Around 4,245, as indicated by Classic Pivot S1 and Camarilla S1. This level is critical as it aligns with recent price action.

Immediate Resistance: Near 4,727, as shown by Classic Pivot R1. A break above this level might signal further upward potential.

Technical Indicators:

MACD: Currently bullish, suggesting upward momentum.

RSI: At neutral levels, indicating the stock is neither overbought nor oversold.

ADX: At a strong level, showing a solid trend direction.

Stochastic RSI: Neutral, with no clear overbought or oversold signals.

Moving Averages: The price is above most of the moving averages, indicating a bullish trend. The price is currently above the 10-day and 20-day EMAs but below the 50-day EMA.

Chart Patterns:

Spinning Top Candle: This pattern indicates market indecision. With the current open, high, low, and close values showing a tight range, traders should watch for confirmation of the next direction.

Additional Observations:

Average True Range (ATR): Suggests moderate volatility.

Ichimoku Base Line: Provides a support level, currently at 4,387, which aligns with other support indicators.

In summary, TCS shows a robust bullish trend with some signs of indecision. Key support is at 4,245, and resistance is around 4,727. Traders should be cautious of the indecision signal from the Spinning Top candle and monitor the moving averages and pivot levels for potential price action.