Larsen & Toubro (L&T) is one of the few companies that maintains highest level of quality and integrity. This is a stock to own. L&T has been always favoured by the quality investors. Somehow, the stock was under performing the benchmark index for last 12 months. L&T is trading 12% below its all time high of 1893 at time when Nifty is trading well above the earlier all time high, which was registered 24 months back.
Now based on current technical evidences, L&T may well recover its lost ground. On 03.04.17, the stock has broken out from a bullish reversal pattern. In fact, two patterns are clearly visible on weekly chart. One is 'Cup & Handle' and the other is 'Ascending Triangle'. Both the patterns have same breakout level of 1615. The closes at 1661 on 03.04.17 with expanding volume. This being Monday, volume in attached weekly chart is misleading. We have still three trading days left in this week.
So whenever L&T closes above 1620 on weekly basis, it is bullish and will remain so as long as stays above this level.
The bullish reversal patterns are not clearly visible in daily chart, but they exist. Latest closing of 1661 is, in fact, 2.5 higher than the breakout level. So bullishness is in the air. The chart is given below...
Disclaimer - The views here expressed and the charts shared are strictly for educational purpose and not guideline for buy or sell. The author will not be responsible for any loss, that may occur.
Now based on current technical evidences, L&T may well recover its lost ground. On 03.04.17, the stock has broken out from a bullish reversal pattern. In fact, two patterns are clearly visible on weekly chart. One is 'Cup & Handle' and the other is 'Ascending Triangle'. Both the patterns have same breakout level of 1615. The closes at 1661 on 03.04.17 with expanding volume. This being Monday, volume in attached weekly chart is misleading. We have still three trading days left in this week.
So whenever L&T closes above 1620 on weekly basis, it is bullish and will remain so as long as stays above this level.
The bullish reversal patterns are not clearly visible in daily chart, but they exist. Latest closing of 1661 is, in fact, 2.5 higher than the breakout level. So bullishness is in the air. The chart is given below...
Disclaimer - The views here expressed and the charts shared are strictly for educational purpose and not guideline for buy or sell. The author will not be responsible for any loss, that may occur.
4 comments:
I always follow suggestions based on your studies and here too ! A very prudent technical analysis this time also I believe.Thanks.
Thanks
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