Company Overview: Bytes Technology Group PLC (LSE: BYIT) is a FTSE 250 Index listed, United Kingdom-based company that provides information technology (IT) software sourcing, adoption, and management across software services, including in the areas of security, cloud and artificial intelligence (AI) solutions. It comprises two brands: Bytes Software Services (BSS) and Phoenix Software (Phoenix). Its cyber security services include Managed Microsoft Sentinel, Managed Firewall Protection, Managed Endpoint Detection & Response, Managed Vulnerability Management, Bytes Incident Response and Penetration Testing & Assurance Services. This Report covers the Price Action, Technical Indicators Analysis along with the Support Levels, Resistance Levels, and Recommendation on this stock.

BYIT’s Technical Observation

BYIT’s prices witnessed correction in recent past and now trading near its lower trendline support levels. Expecting a reversal in Current Market Price (CMP) of GBX 488.00 level with a strong volume buildup and also stochastics data is in oversold zone. The leading indicator RSI (14-period) at 26.67, suggests a reversal in price trend. Stock price trading below the trending indicator 21-period SMA and 50-period SMA, can act as a resistance. The important support level for the stock is located at GBX 431.00 & GBX 408.00 and, while key resistance is placed at GBX 539.00 & GBX 585.00 levels.

BYIT’s Daily Chart

As per the above-mentioned price action and technical indicators analysis, a ‘Speculative Buy’ rating has been given on Bytes Technology Group PLC(LSE: BYIT) at the Current Price of GBX 488.00 as on 7:50AM, April 05, 2024. Bytes Technology Group PLC(LSE: BYIT) was last covered in a report dated 17^th May 2023'. Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

Markets are trading in a highly volatile zone currently due to certain Macro & Micro-economic data and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Related Risks: This report may be looked at from a high-risk perspective and recommendations are provided for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risk, currency risks, social and political instability risks etc.

Note 2: How to Read the Charts?

The Green colour line reflects the 21-period moving average while the red line indicates the 50- period moving average. SMA helps to identify existing price trend. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.

The Black colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.

The Blue colour bars in the chart’s lower segment show the volume of the stock. The volume is the number of shares that changed hands during a given day. Stocks with high volumes are more liquid than stocks with lesser volume as liquidity in stocks helps in easier and faster execution of the order.

The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavorable movement in the stock prices.

The reference date for all price data, currency, technical indicators, support, and resistance levels is April 05, 2024. The reference data in this report has been partly sourced from REFINITIV.

Abbreviations

CMP: Current Market Price

SMA: Simple Moving Average

GBP: British pound sterling

GBX: British pence sterling

RSI: Relative Strength Index

USD: United States dollar

Note: Trading decisions require a thorough analysis by individuals. Technical reports in general chart out metrics that may be assessed by individuals before any stock evaluation. The above are illustrative analytical factors used for evaluating stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.