We all know about the recent investments and the rush that everyone has gotten into to buy reliance jio, but here's the thing it is grossly over valued. Reliance jio might be performing really well but the oil segment is still a part of Reliance Industries, bringing it's valuation downwards. I am not going to get into fundamentals but technical indicators clearly show a revision of price is imminent. Validation points:
1. Trendline channel- Trendline channel, as marked with red lines in the chart shows that Reliance would trade in between those two lines forming support and resistance. It has broken the channel now indicating weakness in the price movement.
2. Fibonacci Retracement - Fibonacci retracement means horizontal lines that help us find support and resistance. These support and resistance are based on fibonacci percentage. Reliance has broken the 23.6% support line, indicating the next support it can take is at 1318 which is our target zone.
3. Bollinger Bands - Bollinger bands which indicate us with volatility, also supports our view. Reliance has crossed the mean level i.e. the middle line and will deviate towards the lower band.
4. MACD - MACD crossover is also seen which means that the weakness can be seen in the price movement now.
The resistance for the stock will be 1460-1480 zone. One can sell the stock around 1460 and keep strict stoploss of 1505. Targets have been marked in the chart.
*This is my view and i am not sebi registered*
1. Trendline channel- Trendline channel, as marked with red lines in the chart shows that Reliance would trade in between those two lines forming support and resistance. It has broken the channel now indicating weakness in the price movement.
2. Fibonacci Retracement - Fibonacci retracement means horizontal lines that help us find support and resistance. These support and resistance are based on fibonacci percentage. Reliance has broken the 23.6% support line, indicating the next support it can take is at 1318 which is our target zone.
3. Bollinger Bands - Bollinger bands which indicate us with volatility, also supports our view. Reliance has crossed the mean level i.e. the middle line and will deviate towards the lower band.
4. MACD - MACD crossover is also seen which means that the weakness can be seen in the price movement now.
The resistance for the stock will be 1460-1480 zone. One can sell the stock around 1460 and keep strict stoploss of 1505. Targets have been marked in the chart.
*This is my view and i am not sebi registered*