Reliance has seen some profit taking come for a while. There is a strong resistance at 2200, which is a very important zone. On Friday, the stock was not able to move out of the right range as marked in the yellow box on the chart.
After a period of extended consolidation, the market may be finally ready to take the price above 2200.
Strategy:
Observe for a breakout above 2160.
Enter at the first dip after the breakout, around 2155.
Stop Loss at the lower end of the range @ 2120.
Target at 2260.
Giving a RR ratio of exactly 3:1.
After a period of extended consolidation, the market may be finally ready to take the price above 2200.
Strategy:
Observe for a breakout above 2160.
Enter at the first dip after the breakout, around 2155.
Stop Loss at the lower end of the range @ 2120.
Target at 2260.
Giving a RR ratio of exactly 3:1.
Trade closed: stop reached