L&T - Longer Term Analysis

Longer Term Analysis on L&T, also, discussing about the Cup & Handle pattern posted earlier. Here is the daily chart:

Right-angled Broadning Triangle formation is clearely visible in the daily charts, marked with yellow dotted lines. Volumes are also expanding along the way, supporting the pattern. But past one month volumes are declining, which indicates some weakness in the up move.

Now, Cup and Handle Pattern has formed exactly below the resistance line of the Righ-angled Broadning Triangle, marked as thick Red line. It is wise to wait until this resistance line is broken convincingly to take up the long trades even for Cup and Handle. Once the resistance line is broken convincingly, the stock could be bought and held for longer term as it has the potential to reach upto Rs.2200.

Update on 8th June: Long Not triggered, as break out didn't happend with volumes.

DLF - Longer Term Analysis

DLF - Below is the Daily chart:

DLF has seen an exceptionally high volumes at the bottom and also while moving up. This indicates a strong accumulation. The two support lines drawn horizontally from previous peaks and the gap created on 18th May's historical up move created a strong base for support. Now, it formed a Cup and Handle pattern, posted earlier, showing good consolidation. DLF could be bought at the breaking out of this Cup and Handle Pattern and could be held for a longer term.

Update: Did not give a break out.