​TCS among 7 counters signalling downside as Stochastic trends lower​

​As per the stochastic oscillator, for select stocks stochastic has been trending down to below 50 levels. This implies that the stock can continue to trade lower. (Source: StockEdge)

Stochastics in technical analysis refers to a set of oscillators pointing at buying or selling opportunities based on momentum. Further, in the world of trading, it is used to link the current price of a security with a range of outcomes that may be possible.
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The tool compares the stock’s particular closing price to the price range over some period. Usually, the period for computing Stochastic is 14 days.

​Herein, C is the closing price, L14 is the lowest price during the reference period of 14 days and H14 is the highest price during the period.

The indicator helps in generating overbought and oversold trading signals. Also, the indicator measures the momentum of a security’s price for determining trends and predicting reversals. Further, the indicator considered to be highly accurate can be used in conjunction with RSI for confirming the signal.

​Slow Stochastic %K: 35.89| Last close: Rs 3401.65

​Slow Stochastic %K: 46.34| Last close: Rs 405.15

Slow Stochastic %K: 43.07| Last close: Rs 3820.85

​Slow Stochastic %K: 49.91| Last close: Rs 129.25

​Slow Stochastic %K: 46.45| Last close: Rs 218.8

​Slow Stochastic %K: 48.14| Last close: Rs 1993.3

​Slow Stochastic %K: 49.84| Last close: Rs 4462.65