Reliance (RIL) is very critically poised. Let us take a look at the daily and the weekly charts of RIL. On the weekly chart RIL has broken a multi year trend line, and closed below it. It is also trading below its 13 and 26 week EMA. On the daily chart it has formed a rounding top from mid march till now. Same can be seen on the hourly charts below. 2100 for now is lifeline for RIL. A short term technical bounce from here cannot be ruled out (positive divergence on hourly charts). I make this assumption because it is already trading on the lower channel and far away from its value area (the EMA’s) and is bound to be pulled back there. In fact this pull back can be a good shorting opportunity. On the flip side breaking 2100 on weekly basis opens further downside to 1800 and 1600.
No comments:
Post a Comment