Tech Mahindra: Correction in Uptrend

The long-term trend is completely intact and unchallenged. However, on the near term the outlook is a bit tiresome; bearish divergence and the lack of significant new highs suggests buyers are exhausted and a correction is around the corner. Tighten stops on existing longs or cover all together. New buying can be done if/once a deeper correction has occurred and prices set a new higher base. The area around 550<>570 would be ideal for such a base.

  • Primary trend: positive
  • Outlook: correction in uptrend, moderately negative
  • Strategy: cover/protect longs and re-enter after correction
  • Support: 571.70 / 537.50 / 506.10
  • Resistance: 532.10 / 665
  • Outlook cancelled/neutralized: n/a

Daily chart Tech Mahindra (NSE)