TCS bounces from upward sloping trendline support

Considering the weekly time frame, the stock of Tata Consultancy Services Limited has bounced back from the edge of the rising trendline support that is formed by connecting swing lows from November 2018. The reversal from the support is confirmed by the above 50-week average volume. 

Currently, the stock is trading above its short and long-term moving averages, i.e. 50-week EMA, 100-week EMA and 200-week EMA. Among the momentum indicators, the 14-period weekly RSI took support at 40-level historically many times and this time also, it bounced exactly from the same level. The daily stochastic is suggesting some bullish strength as per cent K is above the per cent D.

The Ichimoku chart on the daily time frame is clearly giving a positive view as it closed above the KS and TS lines. Moreover, on daily scale the Know Sure Thing (KST) has also given a bullish crossover.

Going ahead, the level of Rs 2,047 is likely to act as an immediate support. While the major support is placed in the zone of Rs 1,985-Rs 1,970 as it is the confluence of 100-week EMA and upward sloping trendline support. On the higher side, the level of Rs 2,150 followed by Rs 2,180, would be seen as the next resistance zone for the stock.