TECHM – Positional. Wait for BUY confirmation – 04/09/2017

TECHM is showing potential buy opportunity. Let us find how this technical analysis shows this stock will be the most probable bet.

Update as of 16/11/2017

TECHM has gone up from 420 range to 490 range in last two months. When this post was written, price was 426.  Monthly and daily chart shows long up trend for this stock.

Latest charts :

Monthly chart

TECHM monthly chart

Original post

My method of finding the potential scrip is based on triple  or multiple time frame format. It means you have to go through a minimum of three time frames in technical chart.
I have taken Monthly, Weekly and daily charts of TECHM. For assurance we will have a look on RENKO chart too.
Lets start from higher time frame.
 
Monthly chart
 
From the monthly chart, you can see, even if the price is in a long-term down trend, there is a retrace to nearest upper trend line. Last two months were positive, and hopefully it will continue for one or two months.
 
Weekly Chart
 
See from the weekly charts, it is clearly seen it is in a retrace path and near to its upper limit. But still it can go up for another 4-5 weeks.
 
Daily/Hourly chart
 
So this is the current daily/Hourly trend. It is clearly shown that It has reached the lower support trend line. But before entering the trade, wait for a green candle which breaks the red down trend line.
Lets have a look at the RENKO chart too
TECHM RENKO
In renko, the buy point is not confirmed yet. It shows there is still room for down move. Lets wait and watch how the market responds.
Best wishes.
 

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