Is Descending triangle forming in HCL technologies & If confirms its implications ?

HCL Technologies Daily Chart

·         HCL Technologies has formed a classical lower top formation and a distribution is seen is well

·         With 1100 acting as a stiff resistance for the counter, it’s in the process of forming a descending triangle below 1040

·          It’s advisable to avoid long positions in the stock until 1121 is crossed decisively on closing basis

·         The shorts can be built on the counter around 1090 – 1100 and below 1078 for initial targets of 1045

·       Below 1040 stock can completely move into a bear grip and the descending triangle targets would be 905

·    The key supports for the counter is around 1077 (50 DMA), 1040, 1000 (100 EMA) and 950 on downside and the resistance levels are 1100/ 1112/ 1121.

Trade objectively and wisely with the consideration of own risk with amid volatility. The strategy would be to wait patiently for the right opportunity to unfold to probable profitable trade setups.

Raju V Angadi

Equity Research Analyst

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Disclaimer: This is just an view based on the research of individual for educational purpose. So kindly trade along with the consultation of your financial adviser, market trends, price action and own risk appetite considered while investing or trading in markets