Decision Zone - LT

7 apr 2020

LT has shown heavy consolidation within the channel for about 5 times. Any breakout on the upside and the downside can possibly be a good setup for intraday play. On the downside, we can see a target till the trendline in black. It would need healthy volumes for the trendline to break. The reason being that, on previous occasions when the trendline had been tested, the price action was supported by good volumes and yet the line held. So, for a safe exit, I see trendline as the target. On the upside, there can be a possible gap fill created by gap down opening on 30th of March. One can look to exit there, but if the volume supports, we can see a rise till the previous supply zone on the monthly charts ranging from 860-80´s.
For entries, I would look at a break of the channel which would be confirmed by a candle closing above or below it.