L&T: Have tried labelling from covid low's.
*Logic behind labelling price as corrective structure:
From covid low's no swing has internal structure of an impulse, every swing is divided in 3 sub-waves meaning rise in L&T was corrective.Also no impulse rules were followed to make an impulse pattern ofhigher degree.
*Eliminating corrective pattern:
From covid low's we already have 5 waves(marked in green) having 3 internal sub-waves meaning we are in a middle of a triangle or complex wxyxz correction or diametric pattern,but looking at the price pattern it seems like we are having wxyxz triple correction as prices are neither converging nor expanding in order to make triangle or an diametric pattern.Hence i have labelled it as WXYXZ of which w,x,y,x is done and currently we are in wave z.
*Current structure & internal stage
Now this wave Z is sub-divided in lower degree 3 internal wave WXY(in orange) of which wave W and wave X is done.we are right now in wave Y of which wave A is done and wave B will be done shortly post which a rise in the form of wave C would complete entire WXYXZ 11 swing correction.
*Price Fore-cast on the basis of current labelling from current levels.
On the upside important level is 1740(123.6% extention of wave w in orange degree from wave x low's) and 1834(161.8% extention of wave w in orange degree from wave x low's) where entire pattern can end.
On the down side 1550-1580 zone can act as good support as we have a price action area in that zone.
*Conclusion
As per this labeling up side room is limited hence anyone holding this stock should keep stop-loss depending upon there risk appetite or by referring price levels mentioned above and new long's should be avoided from swing trading point of view
*Logic behind labelling price as corrective structure:
From covid low's no swing has internal structure of an impulse, every swing is divided in 3 sub-waves meaning rise in L&T was corrective.Also no impulse rules were followed to make an impulse pattern ofhigher degree.
*Eliminating corrective pattern:
From covid low's we already have 5 waves(marked in green) having 3 internal sub-waves meaning we are in a middle of a triangle or complex wxyxz correction or diametric pattern,but looking at the price pattern it seems like we are having wxyxz triple correction as prices are neither converging nor expanding in order to make triangle or an diametric pattern.Hence i have labelled it as WXYXZ of which w,x,y,x is done and currently we are in wave z.
*Current structure & internal stage
Now this wave Z is sub-divided in lower degree 3 internal wave WXY(in orange) of which wave W and wave X is done.we are right now in wave Y of which wave A is done and wave B will be done shortly post which a rise in the form of wave C would complete entire WXYXZ 11 swing correction.
*Price Fore-cast on the basis of current labelling from current levels.
On the upside important level is 1740(123.6% extention of wave w in orange degree from wave x low's) and 1834(161.8% extention of wave w in orange degree from wave x low's) where entire pattern can end.
On the down side 1550-1580 zone can act as good support as we have a price action area in that zone.
*Conclusion
As per this labeling up side room is limited hence anyone holding this stock should keep stop-loss depending upon there risk appetite or by referring price levels mentioned above and new long's should be avoided from swing trading point of view