FYI : Red Line refers to Monthly Trendline(TL) , Blue Line refers to Weekly Trendline(TL), Black Line refers to Daily Trendline (TL)[\b]
Larsen & Toubro (NSE:LT) is an Indian construction and manufacturing mammoth with MCap of Rs . 2.7L Crores ,so it's safe to say that LT is a blue chip stock with low downside and prospect of consistent return. Stock has given a CAGR of 18% over the last 5 years. Now coming to Technical Analysis of it's chart :
1. Stock gave a breakout and closed above redline for the first time in last weeks & has re -tested and bounced back from it which confirms this breakout is genuine.
2. Stock is also respecting the blue line since post covid bull run.
3. Stock is trading @ All Time High ,hence using Fibonacci retracement tool to aim for targets which is 2800 in this case.
4. Swing traders can keep a trailing SL to minimize losses & maximize profits; for me it's whenever it breaks the blueline and gives a closing below it.
5. For people looking to buy & forget, can keep a SL if it breaks and closes below the red line.