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