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Larsentoubro

LT : 5th time Retest of 1800's zone !In Past 3 years from 2014, LT has tested this 1800's zone 4 times & went down everytime. Now it is back again testing the same zone, though we have wiggling room of 150 points in the upside, the resistance zone seems pretty strong. History repeats but for 5th time it will retrace after hitting the resistance zone or not ? Only LT can answer, but we have reasons to believe it will retrace down. i) Pretty Strong resistance zone & Harmonic pattern completion in the zone ii) Potential Double Top formation (daily) with RSI divergence can happen, if you check back it has happened earlier in same resistance zone 3) Though Double top formation fails, ABCD completion is little above that but still within zone Personally, I feel it will get into range mode of 400 points but I haven't checked fundamentals so I can be wrong. If you have strong fundamental reasons to believe that it will move up breaking 1900's , you can acquire very small quantity now & Go with accumulation & once that 1900's resistance crossed convincingly on weekly, you can fully invest. Happy Investing !
NSE:LT
by InsiderB
5
L&T : Solid & Sturdy Shoulders Directionless on Direction : Are we predicting the directions here ? Absolutely not, then that arrow pointing down ?! Hmm, As Market has went up earlier when it was in bull run, its ideal expectation that , in a downside move it will move further down ( Check Left n Right Consolidation ) . All fine if it breaks downside & moves as we wished, but what if it turns out to be false one ?! Well, You Know how we trade breakouts, Just reverse the trade, bcos the otherside will make up the loss on false breakout. Dictating the Direction : But wait ! If I use some other tools and predict direction of breakout, I can avoid false break, right ?! Hmm, Yes you can, it protects your capital on false breakout, re-think whether those same tools right in predicting direction every-instant ? Nope, Some fails, Some Wins. Ah ! So that's why we go with whichever side breakout logic & Reverse. Want an Interesting tidbit ?! Whether you Dictate the Direction or Directionless on Direction : Your Success Rate won't vary much. InsiderB
L
by InsiderB
9
Larsen : Simple Lines, Absolute BlissJust take a very good look at charts, there are just simple lines, nothing complex or as magic. It doesn't mean complex strategies won't work.. both of them have their own pro's n cons, All you need to is completely understand what you are doing n following and sail through with that strategy even in times of downfall. Here we are looking for upside breakout in LT from this triangle and aiming around the zone of 1820's, though of doing this with Gann but wanted to show how money can be made in single stock over time with simple lines over the time :) We are not interested in downside breakout. True to the title,even the post is in simple understandable lines. Simple Lines, Pure Bliss be it words or trendlines :)
NSE:LTLong
by InsiderB
32