Tejas Networks Limited (TEJASNET) Stock - Complete Technical Analysis - Sep 20, 2024

Tejas Networks Technical Analysis: Bearish Signals and Key Levels to Watch

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, well analyze Tejas Networks Limited, currently trading at 1,221. The stock is facing bearish pressure, highlighted by the formation of a bearish engulfing pattern. This pattern indicates potential weakness in the short term.

Key indicators show that the stock is in a consolidation phase, with an Average Directional Index (ADX) suggesting a lack of strong trend momentum. The Relative Strength Index (RSI) is approaching oversold territory, which may indicate a potential bounce-back opportunity. However, the Stochastic Oscillator is also in oversold territory, emphasizing the potential for continued downward movement.

Support levels are seen at 1,166 and 1,014, while resistance is at 1,410 and 1,502. The stock is currently trading below key moving averages, which adds to the bearish sentiment. Furthermore, the stock is currently 18.39% below its 52-week high of 1,495, achieved in late June 2024, and has gained 87.35% from its 52-week low of 651.25.

Given the current technical indicators, traders should be cautious and look for signs of reversal near support levels before making any significant moves. Monitoring volume patterns and the upcoming candle formations will be critical in determining the next steps for Tejas Networks.