L&T Multiyear BreakoutLarsen & Toubro Limited - Multi-Timeframe Breakout Analysis
Current Price:4,004.40
CRITICAL SETUP ALERT
L&T is at a pivotal moment with breakouts confirmed on weekly and monthly timeframes. The stock is now in a crucial period that will determine the validity of this range breakout.
KEY TECHNICAL OBSERVATIONS
Weekly Chart Analysis:
- Nearly 1.9 Years of Consolidation (2023-2025) between 3,200-3,800
- Clean breakout above 3,800 resistance with strong momentum
- All major EMAs (20/50/100/200) aligned bullishly
- Long accumulation phase suggests institutional participation
Monthly Chart Analysis :
- Breakout confirmed above 4,250 resistance box
- Strong bullish candle with healthy volume expansion
- EMAs: 20 | 50 |100 I 200 - all rising
Current Status:
✅ Breakout happened on weekly/monthly charts
⏳ Awaiting confirmation via follow-up candle close
📈 Price holding above breakout zone shows strength
🎯 PRICE TARGETS
Based on the range breakout and Fibonacci projections:
- Target 1: 4,451.25 (Immediate resistance)
- Target 2: 4,809.60 (Major psychological level)
- Target 3: 5,424.35 (Extended target - 35% upside)
- Target 4: 5,750+ (Bullish scenario)
📌 CRITICAL LEVELS
Support Zones:
- S1: 3,740 (Breakout retest level)
- S2: 3,611 (20 EMA on weekly)
- S3: 3,419 (Consolidation top - breakdown level)
WHAT MAKES THIS SETUP SPECIAL?
1. Time Factor: 1.9 years of consolidation = strong base building
2. Multi-Timeframe Alignment: Breakout on both weekly AND monthly charts
3. Volume Confirmation: Significant expansion during breakout
4. Long-Term Trend: Steep uptrend from 2020 lows still intact
For Conservative Traders:
- Wait for successful retest of 3,740-₹3,800 zone
- Confirm with strong bounce and volume
- Enter on confirmation with tighter stops
For Long-Term Investors:
- Accumulate on any dip to 3,700-3,800
- Strong fundamental backing (Infrastructure leader)
- Multi-year breakout suggests sustained momentum
- Target: 5,500-6,000 (12-18 months)
- ❌ Failure Signal: Close below 3,740 = False breakout, back to range
What to Watch:
1. Monthly candle close (crucial for pattern confirmation)
2. Volume sustenance above breakout level
3. No bearish engulfing on weekly/monthly timeframe
4. Hold above previous consolidation high (3,800)
DISCLAIMER:
This analysis is for educational purposes only and NOT financial advice.
- Technical patterns may fail; past performance doesn't guarantee future results - Breakouts can be false; always use stop losses - Conduct your own research and consult a financial advisor - The author may or may not hold positions in L&T - Trading/investing involves substantial risk of capital loss - You are solely responsible for your investment decisions
**Trade responsibly with proper risk management.**
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