L&T - 2nd October 2016

This week's chart of the week is again L&T where it has formed a multiple bottoms at around 1400. Looks like this stock has very very good support at around 1400 and can sky rocket if the results in October are good.



Note: Chart of the week is not trading recommendations but way to look at the charts the way I see them.

 

All the gaps are not to be filled.

 

Yes let's hope understand the gaps. There are many kind of gaps and gap ups in an uptrend are generally not filled and so is the case of gap down in the down trend. See the charts of Nifty and in June /July time there are so many gaps in Nifty


And those will not be filled as those are gaps in an uptrend but in sideways trend, they are more likely to be filled.

L&T's Gap was tested multiple times and yet not breached and it is more likely not to be filled now.

 

Agree but there are many classifications of gaps and you can read about them in Technical Analysis of Financial Market

 

The pleasure is all mine.