Stock of Reliance Industries has formed FLAG PATTERN which suggest uptrend is still intact & price will move further up!!!
Here is few information about FLAG PATTERN:
What is Flag?
1. After sharp rally, price moves in fixed parallel price range. 2. Generally, flags are few days to 3 weeks long. 3. Volume should be higher at starting point of flag & later it should reduce as price starts to consolidate. 4. Volume should increase either at breakout point or afterwards.
All the above characteristics are getting met, just higher volume is expected in further upward move which will act as strong confirmation of uptrend!
How to decide target price?
1. Calculate difference from starting point of rally (Point A) up to starting point of flag (Point B) which comes to 201.70 (2191.70 - 1990.00) 2. Add 201.70 points at breakout point in order to calculate target price. 3. In this case it will be 2222.00 (Point C) + 201.70 = 2423.70 (Point D)
Hence, we can expect Target price around 2420 - 2430 from this levels
Note: Never forget to put Stop Loss in any trade, in this case trader should put Stop Loss at little below support zone which comes to 2173
Disclaimer: This idea is presented just for educational purpose only. You will be solely responsible for your own money & decisions you take.