L&T - Cup and Handle Formation Near Breakout ZoneChart Structure:
Larsen & Toubro is forming a textbook Cup and Handle pattern that’s now testing its neckline around ₹3,780–₹3,800. The base extends nearly 10 months, creating a strong accumulation structure with a shallow handle - ideal for a breakout continuation.
Technical Highlights:
Cup Base: ₹2,950–₹3,000
Neckline: ₹3,780–₹3,800 (currently being tested)
Handle: Tight consolidation with declining volume, now showing early expansion
RSI: Rising towards 70, confirming strengthening momentum
Volume: Reaccumulation behavior - lighter on corrections, heavier on upswings
Trade Setup:
Breakout Confirmation: Close above ₹3,820 with strong volume
Target: ₹4,500–₹4,550 (≈19% upside from breakout)
Stop-Loss: ₹3,600 (below handle low)
Technical Verdict:
A sustained move above ₹3,820 would mark a major bullish continuation, potentially initiating a new leg in L&T’s long-term uptrend. Pattern reliability is high given the depth, duration, and structure of the base.
Disclaimer:
This analysis is for educational and informational purposes only and does not constitute investment advice or a recommendation to buy or sell any security. Markets involve risk, and past performance does not guarantee future results. Conduct your own due diligence or consult a qualified financial advisor before making investment decisions.
