Reliance Technical Analysis 28-02-15

Hi,

Reliance has been in a consolidation after the major decline in 2007. The stock tried to break out in 2014 but failed. This is a plan to benefit from the range bound price action as Reliance is now at the lower zone of the consolidation.

From June it started a downtrend and diverged from the Nifty as shown below –

reliance

The RSI reading is 40.78 and it could be a point of support.

According to the bollinger bands it shows a convergence with the 13 period and the 34 period lower band at 825, This could act as the short term support.

reliance bollinger band

If we go into the hourly chart of Reliance I have marked the support zones as well as the expected resistances.

reliance Hourly

The first resistance 890- is the fibonacci clustering of retracements from the previous two pivot points.

The second resistance 920 – has been taken from the Bollinger Bands Upper Band of both the 13 & 34 periods.

The Price currently is at the upper part of the retracement channel drawn and there should be some pullback which could then lead to the price target of 880 – 890. If however the price does not take support from the lower channel , then prices can reach 831-825. Currently the bias is positive for the short term until the lower channel is not broken.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s