Reliance Industries which in the past 3-4 days has increase by 3-4 % continuously due to its excellent quarterly results. But the security is overbought in the market. Stock price has crossed the upper risk band, volume oscillator is decreasing and RSI has gone in the overbought zone. Last but not the least stock has given a doji candlestick on last trading day....
This is daily chart of BEML on NSE (INDIA) with CMP @ 700.45. It seems to be a good shorting opportunity based on following observations:
1. It is downtrend and price is still trading below SMA200/SMA100.
2. A trendline drawn on the chart shows resistances where price rejections are shown by arrow. Now again, price has tested this trendline and also SMA100 and...
SHORT SWING TRADE IN RELIANCE
NOTE:TYRING TO CATCH PROFIT BOOKING AND
1320 WAS A STRONG RESISTANCE BEFORE SPILT
RISK CAUTION I AM FULL TIME TRADER AND RISK TAKER
THIS TRADE IS NOT TO DETERMINE THE TREND
SHORTING RELIANCE DUE TO RSI TOUCHING 80 LEVELS
ON DAILY AND WEEKLY CHART
1. Share recently broke its crucial Fibo Support at 628.
2. Bear Flag Pattern
3. Stochastic Indicator showing reversal from overbought scenario
4. Share also tried to break 23.6% fibo support, however was not able to sustain it.
The share has increased from 1900 to 2400 in the past 1.5 month (i.e. a whopping growth of 30%+)
SHORT BELOW 2270
The share is primarily because of below mentioned reasons :
1. Broke trend line which indicates fall.
2. Crucial Fibonacci Support at 2228. If it breaks, Free fall.
3. Reversed from overbought levels as per Stochastic Oscillator, due correction...
AVOID long unless closing above 9709 (unlikely), indicators are set for short.
A break of trendline followed by negative MACD crossover could lead to a correction.
Was thinking of going for a 9800 CE SELL and 9200 CE BUY? any opinion? P.S: I'm very new to options.
Gujarat Fluorochem may start fall from this region..
Reason 1: It is showing negative divergance in daily charts which indicates for being cautious..
Reason 2 : In weekly charts it is Highly overbought (RSI 80) which confirms it may go downwards...
Its Targets are :
Target 1 : 770
Target 2 : 760
Target 3 : 750
Note: Do your own study before making...