This IT stock witnesses breakout of Inverse Head and Shoulders pattern! Watch out!

Meanwhile, the stock is up by 6.5 per cent on an MTD basis

The stock of Mindtree had made an all-time high level of Rs 5,060 in the month of November 2021. It formed a bearish engulfing candlestick pattern at all-time highs and thereafter, entered into a declining mode. However, the stock made multiple attempts of pullback but these pullback attempts failed to cross the previous swing high thereby, forming lower highs on the daily chart.  

Recently, the stock just slipped below its 200-DMA for a single trading session and thereafter, witnessed a sharp rebound. While on Wednesday, it witnessed a breakout of the Inverse Head & Shoulder pattern, which is a reversal pattern. The stock is trading above its important short-term moving average i.e., 20-DMA.  

The stock's relative strength index (RSI) has reached its highest value in the last 14 days, which is bullish. Also, it has managed to close above its prior swing high. The daily MACD is trading above its signal line. The MACD histogram is suggesting a pickup in the upside momentum. Moreover, the +DMI line has crossed over -DMI, which is a positive sign while the +DMI line is in a rising trajectory and above the level of 25.  

Considering the above factors, it seems that the stock is likely to continue its upmove and demand special attention.  

Meanwhile, the stock is up by 6.5 per cent on an MTD basis while on a YTD basis, it is down by 13.5 per cent