Beyond Technical analysis - II Short

RELIANCE INDSNSE

Description

⋅ May 8, 2020 5:46 PM

Reliance Industries is announcing good news every day. This is making a bullish sentiment. (Short term)

Volume:

Heavy volume compared to the average volume of Reliance. (Shown by using Bollinger bands in previous charts)

The number of trades has significantly low & traded quantity is high.*

Delivery

After 21 April 2020, there is a significant drop in deliverable quantity.*

Turnover

25 April 2020 had the highest turnover (up to 7 May 2020) & is decreasing day by day.*

Option Chain

1600 & 1700 may act as good resistance where 1500 might act as support.

Price action

Self Explantionary on chart

Note: * marked -- Based on my own research & analysis

-> Just wait for some time to get some short signals. This move looks speculative .

Comments

T_Harth

⋅ May 8, 2020 7:32 PM

If Reliance makes a New ATH, will your short view change? Again today after market hours it announced good news of Saudi Wealth Fund looking to buy stake in Jio. Do we trust the news or Price action? Also today's Gap up move could be an Exhaustion Gap, don't you think so?

abhishek_sh4

⋅ May 9, 2020 3:01 PM

@T_Harth, Hello !!

Q.)View change by ATH?

A.)No. Please refer to my data analysis, I strongly believe this is a speculative rally.

Q.) Price action or news?

A.) When there is unexpected news, Technical analysis/Price action doesn't work for some time.

Q.) Today's move is an Exhaustion gap?

A.) It's not an exhaustion gap. Maybe it can be a runaway gap. As per my knowledge exhaustion gap should be on the downside.

Saudi wealth fund, facebook deal is all being used to push the prices up. Sooner or later the price will fall. I think people with positional trades (holding delivery) should look at selling stocks at a rally & a trader might find a good sell signal.