I am keeping an eye on Reliance for quite some time now. If you see carefully, Reliance is forming a Flag and Pole pattern and it has been almost an entire year now that it is stuck in the flag.
I'm betting big on the breakout. Quite a safe bet I suppose because SL will be too minimal and Targets would be massive.
I believe this is a good time to accumulate!!. Also, with Reliance venturing into multiple deals and projects, and considering the fact that it has the biggest market cap in India, makes this trade even safer!!
Would be great if you let me know your thoughts!!
*STRICTLY NOT A BUY CALL*
Duration 10 days
I am in a learning stage, this is just my observation
@AKJ46 what's your input in this
Frankly, I didn't study the open interest but purely on the basis of my chart, I agree with your views.
2200 is a strong supply zone as we can see. Also, the upper flag trendline will provide an obstruction at 2200. So the stock should retrace from there.
Thank you for your comment. I'll include option chain analysis as well in my analysis from now onwards!
So as per the theory, the target for a flag and pole pattern is equal to the length of the pole.
So in this case, the length of the pole is around 1200 points. So we can expect Reliance to move about 1200 points after the breakout. This sets the target between Rs 3400 and Rs 3450.
But it's on a monthly chart, so please don't expect it to hit the targets real quick.
Hope I answered your question!!
I don't think it will take just a month. According to me, it'll be taking anywhere between 3 and 6 months.
But I really hope I turn out to be wrong and it hits the target quickly.