The key observation on the price chart of L&T Technology Services is that the stock has recently registered a breakout above the upper band of the “Falling wedge” like pattern with sharp surge in volumes, encompassing the entire decline since June 2017 high of Rs .872.50. It signals end of the corrective phase and start of a fresh up leg
During the recent up move, the stock has also moved above its 50-Day , which has acted as a strong resistance during the corrective decline.
During the last 2-3 weeks consolidation the stock is seen taking support at the lower thus signalling a good entry point.
Currently, the stock has given a breakout of upper band, as the rule suggest, when stock breaks upper band and stay above it for few trading sessions then it is considered to be for the stock going forward.
Further, “Bullish harami” pattern was formed by the stock as on 03-07-2017 and A “Three inside up” pattern was formed on the next following day, which hinted to a trend reversal in the near term for the stock.
line is already crossed over zero line, indicator is in buy mode and heading upwards.
We expect the stock to continue its current uptrend and head higher in the coming weeks, hence suggest a “Buy” in this particular stock at CMP or at any dips (price range Rs .750-760, with the targets of Rs . 820-845 / Higher and stoploss to be placed just below Rs .710 on closing basis.