RELIANCE : Bearish Rectangle AlertA classic bearish rectangle continuation pattern..
This setup appears after a clear down-move, which is the textbook requirement for a bearish rectangle (it is a continuation pattern, not a reversal).
When a rectangle forms after a downtrend, the odds strongly favor a downward breakout (continuation of the original bearish move).
The market has already shown heavy selling pressure (the steep drop along the black trendline). The rectangle is simply a pause where sellers are resting and buyers are trying (but failing so far) to push price higher.
No bullish reversal signals have appeared yet — no strong buying volume, no higher lows inside the box, and the overall trendline is still intact as overhead resistance.
Key Levels & Trading Implications Right Now
₹1,350 (lower boundary) : Major support + rectangle floor Break & close below = strong bearish confirmation
₹1,365–1,370 (upper boundary): Rectangle ceiling Break above = pattern invalid (possible bullish reversal)
₹1,325–1,300 : Measured-move target (if breakdown) Next logical downside target
Bearish scenario (most probable while inside the box):
Price breaks and closes below ₹1,350 on 15m timeframe (ideally with increased volume).
Target = height of the rectangle (≈ ₹15–20 points) projected downward from the breakout level → ₹1,330 – ₹1,310 zone.
Bullish invalidation
:Only a clean break above the top of the blue box (₹1,370+) would kill the bearish rectangle and turn the short-term outlook neutral-to-bullish.
Short
