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LARSEN & TOUBRO LT Elliott Wave technical analysis [Video]

LARSEN & TOUBRO Elliott Wave technical analysis

  • Function: Bullish Trend.

  • Mode: Impulsive.

  • Structure: Navy blue wave 1.

  • Position: Gray wave 1.

  • Direction next lower degrees: Navy blue wave 2.

  • Details: Orange wave 4 appears completed; navy blue wave 1 of gray wave 1 is now active.

  • Wave cancel invalid level: 2969.

The daily chart of LARSEN & TOUBRO reflects a developing bullish trend based on an impulsive Elliott Wave pattern. The stock has concluded its orange wave 4 correction and moved into navy blue wave 1, which is part of a larger gray wave 1 formation. This early stage of a new impulse wave hints at the potential for an upward move with building momentum in the sessions ahead.

Navy blue wave 1 typically signals the beginning of a new trend, marked by consistent price increases as the market gains directional strength. With orange wave 4 completed, the groundwork is set for this initial wave to establish upward movement, though often at a steady rather than rapid pace.

Market outlook and key levels

Following wave 1, the next expected movement is navy blue wave 2—a corrective phase that may offer a pullback before the trend resumes with navy blue wave 3. The critical invalidation level is 2969. If the price falls below this point, the current bullish interpretation would be invalidated, and the wave structure would need to be re-evaluated.

Trading considerations

The daily timeframe gives a valuable perspective on this unfolding pattern. Traders should monitor for steady price progression and volume increase, which are common in early wave 1 stages. It’s also important to remember that wave 1 may show more measured growth compared to the stronger impulse expected in wave 3.

This phase is crucial for identifying early bullish setups. Technical indicators and price action will help confirm the structure and signal the eventual shift into wave 2. The transition to gray wave 1 in the higher degree structure suggests stronger waves may follow, making this an important setup for trend development.

LARSEN & TOUBRO Elliott Wave technical analysis

  • Function: Bullish Trend.

  • Mode: Impulsive.

  • Structure: Gray wave 1.

  • Position: Orange wave 5.

  • Direction next higher degrees: Gray wave 1 (Started).

  • Details: Orange wave 4 appears completed; gray wave 1 of 5 is now in progress.

The weekly chart of LARSEN & TOUBRO reflects a bullish trend forming under an impulsive Elliott Wave structure. The stock has finalized its orange wave 4 correction and initiated gray wave 1, which is part of the final orange wave 5 sequence. This indicates the beginning of a potential last upward phase in the current bullish trend.

Gray wave 1 represents the early part of this upward continuation and is usually marked by building momentum. The completion of orange wave 4 sets up the possibility for strong price advancement, potentially pushing the trend to higher levels before any major correction takes place.

Trend context and outlook

The weekly timeframe offers a broader view, showing that the stock is likely in the final phase of its ongoing bullish cycle. Entering wave 5 at a higher degree level often signifies a concluding move before a deeper market correction. This moment is critical for traders to assess intermediate-term positions.

Trading strategy considerations

Investors should track gray wave 1’s progress through signs like consistent price gains and rising volume. The analysis supports maintaining long positions during this impulse phase, while staying alert for potential volatility as the pattern matures. Technical tools and price behavior will be vital in validating wave strength and identifying its end.

Traders should be attentive to typical wave completion indicators, including divergence in momentum tools or weakening trend signals. This stage presents an opportunity to engage in the final stretch of the bullish move while planning for the eventual transition into a corrective phase.

LARSEN & TOUBRO LT Elliott Wave technical analysis [Video]

Author

Peter Mathers

Peter Mathers

TradingLounge

Peter Mathers started actively trading in 1982. He began his career at Hoei and Shoin, a Japanese futures trading company.

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