L&T is forming A-B-C pattern where point C has retraced by exactly 61.8% of A-B indicating top out was seen at point C. As per the pattern 100% Fibonacci Expansion of A-B From C comes to 481 level which I expect L&T to test in Medium to Long term. As per the pattern down side target is expected to be tested by last quarter of 2014.
It has also given a breakdown of the channel in which it was trading from Dec 2011 onward forming a Bear Flag Pattern which has given breakdown at 1385 and confirming the down trend. Height of the pole is 1080 and Breakdown is seen at 1395 level. If we take 50% of the pole height as the target then it comes to 540 points and breakdown below 1385 with 540 points will come to 845 level on lower side
