RELIANCE - A new Milestone

RELIANCE scales up to a BIG psychological level today. Summit 2K reached and conquered for the stock on back of amazing resilience and momentum. I am quite sure that over the past few weeks if you had tried to go contrarian short on RELIANCE it would have puzzled you enough and whipsawed your trade. And these kind of strong trends generally reverse when you give up or expect the least. Now with today’s move the stock has breached and closed above 2000, which is a milestone no doubt and these kind of psychological exuberance generally lead to an opposite move. The stock has broken above a short term rising channel which I have highlighted on the chart. If you see a pullback tomorrow or any time soon sub-2k then I sense that the stock will try to test the lower border of this channel. This is not a sign of reversal but more of a consolidation. A break below this rising channel, which in terms of price means sub-1900 will definitely mean some more weakness and a possibility of further downsides. Till then enjoy the trend and ride it as long as it lasts. Trade Well.