Few pointers from my analysis on L&T :
Long term view :
1.Major trendline : It has taken support on major trendline "S1" and historically whenever it has touched it the stock has gone up at least 137.06% !! So far it has rallied about 56% only ,so I believe it has lot of room and steam still left in it.
2. Fibonacci 0.5 level : has been crossed decisively with good Volume (remember this is a monthly time frame , thus indicating solid strength.)
3.RSI : Historically whenever RSI touched near 30-35 levels it has given a good bounce , same can be noticed now.
4.100 day moving average : crossed with good Volume.
Short term view :
5. It is also evident that on a daily timeframe the stock has made a bullish flag pattern and broken out of it , and now currently facing the immediate psychological resistance near 1200-1230 and immediate psychological support near 1075-1100. (check out the comments)
Conclusion : Ideally those who are looking for some good long term bet can go for it and those looking for some quick buck can make note of immediate levels and take action at their own discretion.
Personal disclosure : invested for long term.
Time frame used : monthly and daily.
Disclaimer : This idea was to just give you an insight about my own view and personal observations. Please do your own research or consult an investment advisor before doing any investment or trading.
Long term view :
1.Major trendline : It has taken support on major trendline "S1" and historically whenever it has touched it the stock has gone up at least 137.06% !! So far it has rallied about 56% only ,so I believe it has lot of room and steam still left in it.
2. Fibonacci 0.5 level : has been crossed decisively with good Volume (remember this is a monthly time frame , thus indicating solid strength.)
3.RSI : Historically whenever RSI touched near 30-35 levels it has given a good bounce , same can be noticed now.
4.100 day moving average : crossed with good Volume.
Short term view :
5. It is also evident that on a daily timeframe the stock has made a bullish flag pattern and broken out of it , and now currently facing the immediate psychological resistance near 1200-1230 and immediate psychological support near 1075-1100. (check out the comments)
Conclusion : Ideally those who are looking for some good long term bet can go for it and those looking for some quick buck can make note of immediate levels and take action at their own discretion.
Personal disclosure : invested for long term.
Time frame used : monthly and daily.
Disclaimer : This idea was to just give you an insight about my own view and personal observations. Please do your own research or consult an investment advisor before doing any investment or trading.