RIL has formed a H&S pattern in the daily charts, and there was a breakdown closed below the neckline. Target SL mentioned in the charts.
Disclaimer: I am a novice in the markets, so please don't construe your trade basis this chart. I post it to see if my views holds true.
NSE:RELIANCE has been on nice uptrend for the last few days, but looks like it may need to correct a bit before further progression.
The 20th candlestick has gapped up and with low volume. This pattern also seems to be a regular at the end of any uptrend for reliance, as can be seen on the circled areas.
The RSI has not increased proportionally since the last ...
4.c. has done a very close 1.618 time wave A and the big candle ( Although not a huge volume) may signal a reversal to complete the 5th wave of the up move?
Disclaimer: I am new to EWT but found it really helpful to invest in stocks..
The target for wave 5 is somewhere in the range of 1550-1600 ..
Please do share your view..
Technical Analysis:
EMA 5/20 bullish crossover and EMA 50 lying below the price.
Stochastic on bullish but lying in overbought level and may take some correction.
MACD on bullish and histogram on above the level '0'.
RSI above 50.
Trade:
Buy above - 1042
Target 1 - 1049
Target 2 - 1058
Stop Loss - 1033
Reward Points - 16
Risk Points ...
Triangle formation on Reliance. in this triangle price will break any side, either long or short.
hurdles for Long - EMA 50 acting as resistance and MACD, STO and RSI all showing bearish trend.
Anyway keep until the buy or sell initiate the level.
Trade Idea:
Long
Buy above - 1000
Target 1 - 1006.50
Target 2 - 1012
Target 1 points gain - 6.5
Target 2 points ...
