NSE:RELIANCE   RELIANCE INDS
Reliance has shown a bearish bat pattern.
However, the last leg of the pattern was super strong, so no trading as of now. People holding in cash may hedge with a put option.
Shorting call options can be risky when the stock has such a momentum!

This material is just to introduce the Bat Pattern . As per Scott Carney -
A Valid bat pattern has the following characteristics -
B point at a less than a 0.618 retracement of XA, preferably a distinct 50% or 38.2% retracement . (47.2% in this case)
BC projection must be at least 1.618. (2.0 in this case)
AB=CD pattern is usually extended. (1.618 AB = CD in this case)
0.886 XA retracement. (0.887 in this case)
C point with range between 0.382 and 0.886. (0.825 in this case)

Minimum target is 2080
Second target is 2050
Stop loss is 2231
The reward:risk is not favorable in this trade.

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