Reliance Industries ltd - Finally sign of reversal!The current price action suggests that the market has reached a potential bottom, characterized by a reversal from a previous downtrend. This shift is confirmed as the price breaks upwards, moving decisively past a phase of consolidation or uncertainty.
The Diamond Bottom pattern , a notable reversal formation, typically emerges after a sustained downtrend. Initially, the price action expands, forming higher highs and lower lows, creating a broad, widening shape. This phase indicates increased volatility and uncertainty in the market. As the pattern progresses, the trading range begins to contract, signifying a shift in market sentiment. The highs cease to climb, peaking out, while the lows start to rise, indicating a potential buildup of bullish momentum.
The critical point in this pattern is the breakout above the narrowing boundary lines of the diamond. This upward breakout serves as a strong signal of a trend reversal, marking the transition from a downtrend to a new upward trajectory. Such a breakout often leads to a sustained bullish trend, supported by renewed buying interest and positive market sentiment. This reversal can be a significant opportunity for traders to capitalize on the shift in market direction.
Other Positive Things
[ b]ABC pattern seems to be complete as there is divergence in MACD , after which price to move at-least min 38.2% to 61.8% of Fibo levels
DMI in verge of moving positive direction
PLEASE NOTE THAT:
This chart analysis is only for reference purpose.
This is not buying or selling recommendations.
I am not SEBI registered.
Please consult your financial advisor before taking any trade.
