Tech Mahindra Limited (TECHM) Stock - Complete Technical Analysis - Sep 03, 2024

Tech Mahindra Stock Analysis: Key Resistance

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.

Let's dive into the technical analysis for Tech Mahindra Limited (TECHM). The current stock price stands at 1,644, reflecting a mix of bullish and bearish signals.

Resistance and Support Levels: The stock is currently testing key resistance around 1,649, marked by the Hull Moving Average. If it breaks above this, the next resistance levels to watch are around 1,725 and 1,814 based on Classic and Fibonacci pivots. On the downside, immediate support is at 1,576, with further support at 1,487 and 1,338.

Chart Patterns: Today's candle is a Spinning Top, indicating indecision in the market. This pattern suggests that traders are uncertain about the stock's direction in the short term.

Technical Indicators:

MACD is in a bullish phase, showing positive momentum but also indicating that the stock might be approaching overbought conditions.

RSI is near 65, suggesting that the stock is in the overbought zone but not yet at extreme levels.

ADX indicates a strong trend with a value around 29, which confirms the current bullish trend.

Stochastic RSI and Williams %R also support the bullish sentiment, though they indicate that the stock could be nearing overbought conditions.

Awesome Oscillator is positive, further reinforcing the bullish trend.

Moving Averages: The price is currently above the short-term moving averages (10, 20, 30), which is a positive sign. However, it's approaching the longer-term averages (50, 100, 200), suggesting that the stock might face some resistance here.

Additional Observations: The ATR is elevated, indicating high volatility and potential for significant price swings. The recent volatility suggests that traders should be cautious and consider setting stop-loss levels to manage risk effectively.

In summary, Tech Mahindra Limited shows a strong bullish trend but is approaching overbought conditions. Traders should watch key resistance levels for potential breakout opportunities while keeping an eye on support levels for any signs of reversal.