Tata Teleservices - Key Descending Triangle Setup!

9 sept.

Technical Analysis:

1. Descending Triangle Pattern:

The stock is forming a descending triangle, typically a bearish continuation pattern. The downward-sloping resistance is marked by a blue trendline, and there is horizontal support near the ₹90 level (highlighted in purple).



2. Key Support and Resistance:

Support: ₹90 is acting as strong horizontal support.

Resistance: The immediate resistance is the downward trendline, which is pushing the price lower.



3. Volume:

There has been declining volume during the consolidation phase, which indicates a lack of momentum. A breakout with high volume would provide more conviction for the next move.



4. Moving Averages:

The black trendline could represent a long-term moving average acting as dynamic support around ₹85-90.




Trading Plan:

Entry:

Aggressive Traders: Consider entering long at the current support level of ₹90, with a tight stop loss.

Conservative Traders: Wait for a breakout above ₹95 (above the descending trendline) or a breakdown below ₹90 to confirm direction.


Target:

If a breakout happens above ₹95, target ₹100 and ₹105.

If a breakdown occurs below ₹90, targets can be ₹85 and ₹80.


Stop Loss:

For a long position: Place a stop loss below ₹88.

For a short position (if breakdown happens): Stop loss can be set around ₹93.


Risk Management:

Maintain a risk-reward ratio of 1:2 or better to safeguard capital.