Both hourly and daily charts may be referred to. Price at breakout vis-à-vis resistance zone and this is crucial. Just as Nifty chart. Hourly chart: price got deviated from the rising channel and now trying to enter into the same.
Price is returning from near the resistance zone to settle the overbought technicals. Crude may retrace a bit due to negative divergence. It is not a sell on rise but a buy on correction.
How to trade a bullish stock in consolidation phase? It is buy on correction and NOT sell on rise. Because we don't when it may breakout. See the chart of TechM.
What has happened to TechMahindra will happen to Reliance also since the trend is bullish in this counter. Price now is reaching the resistance line. Can come down to 892 around for support.
Drawing a channel on hourly chart helps us deciding the high probability trades: where to buy and where to sell. Reliance has strong resistance at 943. If the same is taken out, 955 is the target and resistance.
Posted this study a couple of times. Stock is in consolidation phase post steep rise on a breakout. Look at the close up of rise from the low at support line of the band. It has been buy on correction. First target (previous high) is achieved. Next target comes at 955, previous high.
As expected, price took support at the bottom of the narrow range. One day price will break out of the range taking the price to life high. Which day? Only market knows.
As posted earlier, price is moving in a narrow range and consolidating. Now price has reached the support line once more. This happens quite often after a big rally.
NSE:RELIANCE support and resistance diagram is represented in my chart, if support breaks it will move towards below support level, and if it bounces from support then it will move towards upside resistance level. HAVE THIS STRATEGY IN MIND FOR RELIANCE IT WILL WORK AS RAM BAN FOR INVESTOR/TRADER TOO.
Reliance seems going in downtrend one can short it below 891 with stop loss of 907 ,1st target is 881, 2nd is 858, do trades on your own risk.
First,I must tell you this is my first chart on Stocks.I've been trading cryptos for months and that market is completely different from this one.With that said don't take this idea too serious.DYOR . Hope everyone was enjoying the profits from the long rally since last February.Now the market must correct itself before the next leap.Red lines are reversal...
As expressed in the previous post, price moving within a narrow range. Today bears pushed the stock close to the support zone and then the bulls jumped in.
Hourly chart shows mild double top formation at 932 formed on 6th March, little weakness in nifty can drag it down to 925-926 levels. Stop loss should be 938 breaking which would confirm a further upward movement.
Let us have a look into the internals of EWave on hourly chart. If the count is right, price might have started 3rd wave up. It is within the consolidation channel as mentioned earlier.
As stated yesterday, price moving within a narrow range (rectangle, note that most of the chart patterns are geometrical forms, be it Harmonic, EWave or consolidation) and today price is reverting from the support zone.
This market leader is in strong uptrend since it has given a breakout from prolonged (three years) consolidation in February 2017. Now for last about five months price is moving in a narrow range. Presently price is reaching the lower line (support) of this band. We hope that price will respect the support line. Else it will be a breakdown.