On Tuesday, the stock has formed a bullish engulfing candlestick pattern on the daily timeframe. The bullish engulfing candlestick pattern is considered to be a bullish reversal pattern and usually occurs at the bottom of a downtrend.

The stock has given a downward sloping trendline breakout on the daily timeframe formed by connecting swing highs from June 2020. This breakout is confirmed by the above 50-day average volume.

On the weekly timeframe, the stock has formed a bearish engulfing candlestick pattern, which suggests a possible trend reversal. The bearish engulfing candlestick pattern is considered to be a bearish reversal pattern and usually occurs at the top of an uptrend.

The stock has underperformed the frontline indices in the current leg of the upward rally. Also, the stock has relatively underperformed Nifty 500 with a decent margin. The relative strength comparison with Nifty 500 and Nifty 50 has slipped below the low of November 2019.

On a weekly scale, the stock has formed a shooting star candlestick pattern, which suggests a possible trend reversal. The upper shadow of the pattern is nearly 438 points, which is more than three times the body of the candle.

Interestingly, the stock price has made two lower lows in recent times but most of the indicators, including Relative Strength Index (RSI), have not reached near the prior low of 25.84, which was registered on September 24, 2020. Commodity Channel Index (CCI) has also supported the same phenomenon.

Considering the daily timeframe, the stock of L&T Technology Services (LTTS) has given a downward sloping trendline breakout, formed by connecting swing highs since May 2019. Further, the breakout is supported by a robust volume of more than 10 times of 50-day average volume, indicating a strong buying interest by the market participants.

Generally, we rely on the typical momentum indicators or oscillators for recognising an overbought and oversold condition of the stock. However, this Japanese candlestick pattern gives us a unique way to recognise when the momentum is waning out.

Currently, the stock of ITC Limited has divided the community of investors into two groups. One group comprises those who believe that it is incredibly attractive at the current levels while the other group is of the view that it’s a value trap. However, the question arises as to who is correct? Let’s check this from a technical perspective.

On Friday, the index surged above its 200-DMA for the first time after February 28, 2020. In technical parlance, the 200-DMA is considered important as it is one of the basic technical indicators that can be used to determine the long-term trend of security.