Tata Elxsi trades in symmetrical triangle pattern

Considering the daily timeframe, the stock of Tata Elxsi Limited is trading in Symmetrical triangle pattern since last 22 trading sessions. As of now, the price action has narrowed substantially and the price has reached near the apex point of the triangle, which indicates that the stock is likely to give a breakout in the coming days. 

The symmetrical triangle can be a continuation or a reversal pattern. Although, more often it is a continuation pattern. Besides the triangle pattern, the daily chart shows that the Bollinger Bands have contracted, which indicates an early signal of a bigger move. 

Majorly, the stock is displaying a bullish trend as it is trading above its weekly pivot and short-long term moving averages, that is, 20-day EMA, 50-day EMA, and 100-day EMA. The leading indicator 14-period daily RSI is currently quoting at 61.51 and it has recently given positive crossover, which points out for a positive breath in the stock. The stochastic oscillator is also suggesting some bullish momentum as %K is above the %D. 

Going ahead, the zone of Rs. 827-Rs. 835 is likely to act as an immediate hurdle for the stock as upper trendline of Triangle pattern is placed in that region. While on the downside, the zone of Rs. 778- Rs. 770 is likely to provide a strong support as it is the confluence of 34-day exponential moving average and lower trendline of triangle pattern.