As of September 26, 2024, the daily chart of Reliance Industries (RIL) is presenting a cup and handle pattern, a bullish continuation structure suggesting potential upward movement in the stock price.
Key Insights:
Cup and Handle Formation:
The stock has completed the cup portion and is forming the handle, indicating a likely breakout.
A breakout from the handle typically signals a bullish move.
Breakout Levels:
*The price is currently trading near ₹2,995, nearing an important breakout level of ₹3,020. A * breakout above ₹3,074 could trigger further upward momentum.
*Targets: *Target 1: The first potential target stands at ₹3,074 with a price move projection of 120 points (4.04%). *Target 2: If momentum continues, a second target is projected at ₹3,205, with a price move of 233 points (7.86%).
*Volume Profile Analysis: *The volume bars show significant interest between ₹2,920 to ₹3,020, indicating strong accumulation in this range. *Above ₹3,074, volume support could drive the price higher, especially if the breakout is accompanied by increased buying volume.
*Moving Averages: *The stock is trading above the 50-day and 100-day moving averages, which are providing good support and indicating bullish momentum in the medium term.
*MACD: *The MACD line is about to cross above the signal line, signaling a potential buy opportunity with positive momentum. *A strong bullish divergence between price and MACD suggests that momentum is picking up for an upward move.
Conclusion: The chart of Reliance Industries is setting up for a possible bullish breakout, supported by technical indicators such as the cup and handle pattern, volume accumulation, and MACD crossover. Traders should watch for a sustained breakout above ₹3,074 to confirm the upward move, with targets of ₹3,205 and potentially higher in the medium term.
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