Reliance Industries-B Wave Triangle with key resistance@1145

On Monthly Chart, Reliance Industries also could be in trouble unless the market proves me wrong & reliance starts moving above 1145- which is the key resistance level for me.

If reliance leaks downside, below 795 then selling pressure will increase- confirming that it was a B - wave triangle & it is heading down in a C - wave & likely to travel 61.8% of A-wave which comes to 390-400 zone.
Trade active: 08:17 Hrs 25th Oct2016


Reliance is struggling & likely I expect some bounce back, but very important, it should not close above 1145 -which is a very important level or Laxman Rekha for me
This bounce back could happen from the lower boundary of trendline in the zone 1040-1050
If we get the bounce back then I will have to check what kind of bounce back has opened & what will be the next course of action.
Best Regards,
Abhishek H. Singh, CMT
​Growth Director - TradingView India

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Thanks, Keep updating.
absolutely great analysis abhishek ji i m impressed should i buy put option of reliance on monday for good downside target
Reliance will be a front runner to pull down the Index. So let us wait for a bounce in Index to complete first because our setup depends on what kind of bounce is going to open up & then we will decide about reliance. Meantime, we will keep a watch on key levels like 1145 which is near by current trading levels. Yeah, you can take put option as risk is very less compared to the target expected, but which month option will you take as this whole move will take another 7-9 months and we all know financial markets never move in a straight line.
below 795?
Below 795 -pattern gets confirmed & there is no way reliance can escape from its fall.
Sir I have never understood one thing if Wave count is confirmed 100% only after completion of the moves then what is the use of waves ,then it is more of a game of trendlines ,Support & resistance ,Breakouts etc .?
AbhishekHSinghCMT rashmichhajer
The pattern gets confirmed once swing low is taken out until then there could be 100+ counts on the same chart. Going above 1145 will make this setup as invalid, so as going below 795- this pattern has a firm footing like an elephant's foot.
Hi, I have a basic doubt in the wave counting. how do you deal with long term charts like the monthly charts, where the share has been continuously making new lows. In that case where do you start the wave count ? Thanks.
You can start with major highs or lows & do your counts- In this case 1649 was taken as starting point. 5 waves back to back -fits good as a triangle- before it could be A- wave & 5 waves could be triangle so we are left with c-wave down which will complete A-B-C move on larger degree.