Tech Mahindra Limited (TECHM) Stock - Complete Technical Analysis - Sep 24, 2024

Tech Mahindra Limited Technical Analysis: Key Insights & Trading Strategy

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.

Welcome to this technical analysis of Tech Mahindra Limited, trading at 1,637. Currently, the stock is positioned 2.09% below its 52-week high of 1,672 and 49.08% above its 52-week low of 1,098. This indicates a healthy upward momentum over the past year.

Looking at the indicators, the Average Directional Index (ADX) is at a moderate level, suggesting the stock is in a trendless phase, while the Relative Strength Index (RSI) is comfortably around neutral, indicating that the stock is neither overbought nor oversold. The MACD shows positive momentum, hinting at potential upward price action.

The classic chart pattern forming here is a Bullish Engulfing, which reinforces the possibility of a continued upward trend. The stock has recently bounced off key support levels at around 1,591, signaling buying interest.

Resistance is expected at 1,725, where traders may take profits. Key moving averages, like the 10-day EMA at 1,623 and the 50-day SMA at 1,574, provide critical support. Overall, the stock's bullish engulfing pattern combined with positive momentum indicators suggests a favorable outlook in the near term, but caution is advised as it approaches resistance.

In summary, traders should consider buying on dips while monitoring resistance levels closely for any potential pullbacks. This could be an excellent opportunity for traders looking to capitalize on Tech Mahindra's recent bullish signals.