Reliance is moving in an ascending channel and as expected it has broken the upper boundary of the channel to create the 5th Point of the Wolfe Wave. Many a times, we see Harmonics pattern form inside the Channel. And here a Bearish Deep Crab pattern has completed it's structure of XABCD. It is also observed that the Trend is very steep, it got broken and a retest is happening, which essentially triggers end of Up Trend. If Wolfe is true, then target will be 6th Point around 1000. Harmonics target is around 1387.80 and 1272.05. If the Shooting Star Candlestick pattern which formed in today's daily chart converts tomorrow into an Abandoned Baby Top or Evening Star Pattern, then definitely a Trend change can be expected. Caution the nearest Demand Zones can break, if Down Trend starts. So buying at this areas will not be a good idea. This demand zones will either completely break or might give small reactions. Price Action Traders have enough price action evident on the chart to take a short trade. The Stop-Loss for this trade could be around 1619.05. This analysis is for Short Term traders...
Disclaimer: This is not a Trade Recommendation. This is my analysis based on Technical Analysis parameters Like Trap Trading Concepts, Price Action Concepts, Harmonics, Advanced Candlesticks, Conventional Patterns, Demand and Supply, etc.
Trade active
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First Target of 1387.80 has been Achieved today... Now waiting for next Target. This is ideal place to book profits and carry on with the rest
Trade closed: target reached
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Second Target achieved 1272.05.
Comment
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Awesome it has come to test the 6th point of Wolfe, as discussed above.
Nice bro that's some deep thoughts. Just ensure fundamentals are backing ur Technicals. Stay active likr to interact...
How trustable the wolfe waves on your experience?..
Prosenjit
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@Mark_Beard, Thanks bro.. The fundamental analysis of this company is very good but price cannot go straight up, it has to correct a little, at-least 38.2% fib ratio before the next move up. This correction happens because of shift of hands and to book profits. if the correction happens, it will be a good idea to look for a Long trade. Trust me Wolfe works very well.
Mark_Beard
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@Prosenjit, Yes mate, agree to your point on correction! i m fairly aware of techincals.. but wolf waves are new to me... can you throw some light on it mate..
How trustable the wolfe waves on your experience?..