What you see below to your left is the daily chart of L&T. A perfect illustration of H&S, and then a perfect achievement of the target to the downside. Is this the end of the fall??? Frankly speaking no idea… as they say that no support or resistance is strong enuff when the Price is in a strong trend! 1550 looks like a small speed breaker for now.
On the hourly chart (to your right) we can see the fall has been parabolic and now a bullish divergence is seen, but then the price has not given any confirmation to it. If playing for a small bounce then buying above 1580 with a strict 20 point stop can target 1600 and 1620…whereas the real strength will emerge on a strong (volumes!) close above 1650!
2 comments:
Manoj,
You will love this post, only to watch how quickly the perspective change, from a good writer.
http://readingstockcharts.blogspot.com/2010/12/larsen-and-toubro.html
alphabet1 Hi
Yeah Read the link and vibhas sums it up nicely about his post in the comment section;
"Vibhas Pande said...
When market sentiment is weak, even good stocks will succumb to selling pressure. Price points on chart are never rigid.
However stocks rebound as soon as dust settles down and sentiment improves.
Larsen is a good buy at 1750 to 1800 range. Use this downturn to add Larsen to your portfolio.
rgds
Vibhas"
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