Time techno Ltd. cmp 185. Stock price today gave a sharp upmove after a shakeout move yesterday wherein a low of 169.55 was posted. This caused a double bottom formation at around 169 and the high between the two double bottoms is at 187.55. If stock price crosses above 187.55 and closes above it, a double bottom confirmation target would be at 203 .
Now coming to an observation of mine related to past movements of the stock price. During Feb 2018 to Sep 2018, when stock price was at the beginning of its major decline, ( in line with sharp correction in small and midcap spaces) the range between 154 to 184 on left side of chart (marked in dotted blue lines ) acted as a consolidation range before stock price broke down. Stock price then went down and posted double bottom at 115 and bounced back to post high of 164 ( weak pullback) before it went down again in a major decline. Now this shows the area where bulls and bears had a lot of fight lasting nearly 7 months and was a sort of battle ground where range was established, breakdown happened and a pullback materialised but failed within the range.
On the way up we have been observing a lot of action in the same range where we had first a tight consolidation between 140-160 for nearly 10 weeks and then broke out posted a swing high of 194 and stock price again went into consolidation within a range of 170-188 for nearly 4 weeks. Breakout from this range will happen once stock price closes above 188. Till now on way up we have had two tight range consolidations. This is often necessary to prepare a launchpad for a strong move. ( not saying that an upmove is a given, but can happen)
This is an observation that previous consolidation zones during downtrends will act as tough areas to negotiate during subsequent upmoves. Real strength in this stock will be seen once it crosses its previous all time high of 232. ( Usually these resistances are never a definite number but a broad range within a price band)
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