Medium Term Share Market Tips – L&T Financial Holdings
L&T Financial Holdings stock made it’s all time high in Oct ‘ 17 and has since traded lower. L&T Financial Holdings Weekly Chart Below:
Since we are analyzing a long term trend we have used a log scale chart for our analysis. Between Feb ’16 to Oct ’16 we saw this stock rally from lows around 48.25 to 99.20 (essentially doubling in a period of 7-8 months). This was followed by a correction and then a rally to recent all time highs of 213.
L&T Financial Holdings Medium Term Outlook
We have seen a substantial correction in prices since it hit it’s all time highs. Once this correction is complete (& chances are high that it has already) we may expect another major uptrend in this stock which may take the stock to 350/360 levels over the medium term.
The recent lows around 159.80 can be potentially important considering it has occurred around the tentative trend channel and also because it is very close to the 38.2% retracement level of 162.60. While a potential short term test of the 50% retracement level of 147.20 cannot be completely ruled out. Probability of a deeper correction is low.
Considering the potential reward/ risk for the stock, we recommend accumulating this stock for a medium term target of 350-360.
