Hello all traders/ Investors hope you are doing good .
This is just my analysis on the Reliance stock in Weekly and Daily TF . This may give you an idea about this stock for a short term .
Weekly :
For the past one and half years the stock is in consolidation zone i.e the price was non directional , swinging between 600-700 points and recently a major support line structure is broken with a good bearish candle .
Can this lead to the down trend of the stock ?
If No , then lets wait for the price to get out of consolidation zone .
If Yes , then lets look how the Daily TF is performing .
Daily :
A perfect 100 % retracement from the Swing High level (2755) which resulted us in the formation of a perfect falling wedge channel pattern which is yet to have a breakout . Expecting the price to go further below and test the levels of 2250* and then it might make a rally .
The traded volume has increased quite significantly in recent days when compare to other days and not allowing the price to fall below the 2300 levels and not allowing it to go above 2400 is a information to consider here .
CAN this Breakout (if it happens ) be the retest levels(2500) for the beginning of the downtrend ?
Lets wait till this end of month to get a clear view of the trend .
This Wedge pattern can be mapped to Elliot wave pattern , assuming we are in the 5 wave of the downtrend before the corrective wave starts .
Note :
Trade what you see not what you feel .
This is just view based on current market trend and pure analysis purpose .
Please consult with your financial advisor before you deploy any real money for trading .
This is just my analysis on the Reliance stock in Weekly and Daily TF . This may give you an idea about this stock for a short term .
Weekly :
For the past one and half years the stock is in consolidation zone i.e the price was non directional , swinging between 600-700 points and recently a major support line structure is broken with a good bearish candle .
Can this lead to the down trend of the stock ?
If No , then lets wait for the price to get out of consolidation zone .
If Yes , then lets look how the Daily TF is performing .
Daily :
A perfect 100 % retracement from the Swing High level (2755) which resulted us in the formation of a perfect falling wedge channel pattern which is yet to have a breakout . Expecting the price to go further below and test the levels of 2250* and then it might make a rally .
The traded volume has increased quite significantly in recent days when compare to other days and not allowing the price to fall below the 2300 levels and not allowing it to go above 2400 is a information to consider here .
CAN this Breakout (if it happens ) be the retest levels(2500) for the beginning of the downtrend ?
Lets wait till this end of month to get a clear view of the trend .
This Wedge pattern can be mapped to Elliot wave pattern , assuming we are in the 5 wave of the downtrend before the corrective wave starts .
Note :
Trade what you see not what you feel .
This is just view based on current market trend and pure analysis purpose .
Please consult with your financial advisor before you deploy any real money for trading .
Comment:
Price is almost at the zone which i have mentioned in the description . Will observe few candle closes for confirmation .
Comment:
Price rejected at the 2500 . Observing for few more week as nifty is almost at ATH , small bullish momentum from reliance can make nifty reach ATH levels .