Tata Consultancy Services Limited (TCS) Stock - Complete Technical Analysis - Sep 24, 2024

Unlocking TCS Stock Potential: Technical Analysis & Trading Insights

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.

In today's technical analysis of Tata Consultancy Services Limited (TCS), we see the stock currently trading at 4,271, which is approximately 7% below its 52-week high of 4,592.25 and 29% above its 52-week low of 3,311. The stock is showing signs of weakness as indicated by the RSI, which is in the lower range, suggesting oversold conditions. The MACD is also in the negative territory, reflecting a bearish trend.

Looking at the moving averages, the stock is trading below the 10, 20, and 30-day EMAs, indicating short-term bearish momentum. The price is currently below the classic pivot point, which is at 4,418.83, highlighting resistance at higher levels.

The recent inside candle pattern formed on September 20, 2024, has established a range with a parent high of 4,330.7 and a low of 4,227.5. This indicates a potential area of consolidation, and traders should watch these levels closely for possible breakout or breakdown. The ADX shows a strong trend, but the overall momentum indicators suggest caution.

Support levels can be found at the recent low of 4,227, while the next key support could be around 4,245. If the stock can break above the resistance level of 4,330, we might see a retest of the higher levels, but with the current bearish indicators, traders should be prepared for potential downside moves.

In summary, TCS is currently facing a challenging environment with bearish momentum and overhead resistance, so it's crucial for traders to monitor the key levels and indicators closely.