The stock Larsen & Toubro (NSE: LT) has made a series of bullish rejection candles characterized by distinguishable upper wicks for the last 5-6 candles. This is coupled with the fact that the stock is trading at the top end of its 20DMA-Bollinger Band.
We consider these wicks a bearish sign and are of the opinion that the stock can fall from here and touch its 20...
Stock has taken rejection from the S&R zone. Looks good to short below 2600 for quick targets of 2560, 2520
For confirmation, wait for 15-30 min candle close below the TL (Might take more than a session to hit the target)
P.S. Ignore if stock opens big gap down
Buy at 405-409 range for an excellent entry.
SL - Exit if stock close below 402, since it will definetely test the low's of the rejection candle.
Reason for the trade : Rejection + Failed New Low(Previous day)
Exit when: A daily close below the Rejection Day midpoint breaks the pattern, as this would indicate a retest of the Rejection Day...