Trade Idea for LARSEN & TOUBRO LTD
Trade Idea for LARSEN & TOUBRO LTD.
Technical Overview
Trade Setup
Entry:
Enter the trade once the price confirms a W pattern or any other bullish pattern on a smaller time frame (e.g., 1H or 4H) near the current level.
Alternatively, wait for the breakout above 3,750 with strong bullish candles.
Stop Loss:
Place the stop loss below the 200 EMA or the recent swing low, around 3,550, to manage risk effectively.
Target Levels:
Initial Target: 3,950 – A conservative target aligned with the measured move from prior breakouts.
Extended Target: 4,100–4,150 – Based on the previous impulse move of ~677 points.
Risk/Reward Ratio:
This trade offers a 1:4 risk/reward ratio, providing a high probability of favorable returns.
Additional Notes
RSI: Currently at 46, showing neutral conditions but watch for a bullish crossover.
Volume: Monitor for increasing volume near the resistance zone to confirm breakout strength.
This trade requires patience to wait for a bullish setup on lower timeframes.
Technical Overview
- The chart highlights a strong resistance zone near 3,727–3,750, which has been tested multiple times. This is a key level to watch for a potential breakout.
- Price is currently taking support at the 200 EMA (black line), showing a critical area for bulls to step in.
- This is a pre-breakout trade designed to capture the impulse breakout move if the price successfully breaches the resistance zone.
Trade Setup
Entry:
Enter the trade once the price confirms a W pattern or any other bullish pattern on a smaller time frame (e.g., 1H or 4H) near the current level.
Alternatively, wait for the breakout above 3,750 with strong bullish candles.
Stop Loss:
Place the stop loss below the 200 EMA or the recent swing low, around 3,550, to manage risk effectively.
Target Levels:
Initial Target: 3,950 – A conservative target aligned with the measured move from prior breakouts.
Extended Target: 4,100–4,150 – Based on the previous impulse move of ~677 points.
Risk/Reward Ratio:
This trade offers a 1:4 risk/reward ratio, providing a high probability of favorable returns.
Additional Notes
RSI: Currently at 46, showing neutral conditions but watch for a bullish crossover.
Volume: Monitor for increasing volume near the resistance zone to confirm breakout strength.
This trade requires patience to wait for a bullish setup on lower timeframes.
Feragatname
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