Saturday, 24 September 2016

Is Reliance Ready for Big Move?

Reliance Industries is the stock which has done nothing for the investors over the last 6 to 8 years, but now it seems things are changing a lot when we look at the price action.  Here is the daily chart of Reliance,

















As you can see on the chart, on Friday it successfully broke out above the year high (actually 2-year high) and was able to give a weekly close above it.  So prices are showing signs of increased interest from the investors and traders on the counter.

Few pointers to note price action wise which may suggest significant up move from here on,
1) It did nothing for long, long time, around 8 years and now has broken out of 2 year high.
2) Breakout has happened after the enough consolidation.
3) It belongs to a sector (Oil & Gas) which is giving a leadership for last 6 months. Oil & Gas sector is up more than 18% in last 6 months and 9% in last 3 months.
4) Volume activity is much higher in this month of September compared to last year.

So it seems the stock has done all the right things and is poised for the big move.

2 comments:

  1. Are you buying in spot or Futures?

    ReplyDelete
    Replies
    1. Shub

      Don't try to copy a trader, me or anyone else. It will lead you nowhere.
      http://charttechnicals.blogspot.in/2015/08/a-lesson.html

      Better ask to yourself, how would you want to trade this setup?

      URD

      Delete