20 Microns - Head n Shoulder Reversal Pattern

Immediately After listing , Price hit low of 13.85 in Oct'08 n 13.25 in Mar'09 making double bottom formation. Along with market, Stock staged a recovery n hit 57.3 in Feb'10. This is more or less same price when stock was offered for IPO i.e. @ 55 , which means this price of 55 is offering resistance on upside.

After hitting 57.3, share price is on downside n hit low of 36.75. Present structure of the stock is taking shape of Head n Shoulder Reversal Formation with Neck Line @ 36.75-38 n Head @ 57.3. Other Shoulders are @ 46.8 n 44.85. This structure will change only when price moves above 47 n start trading above consistently. Failure for stock to hold neck line of 36.75-38 can be disastrous for the stock. It can head for lower levels. Sell Out @ 40.35.

3i InfoTech

3i Infotech made its all time high @ 164.5 in May'07. It made a huge distribution pattern arround this level for almost one year n along with market it started declining in 2008. Once its support line was broken in Sep'08 , it went for a total collapse and hit its all time low of 25 registering a massive decline of 80 % in a span of six months. After touching its all time low of 25 in Mar'09, it made a massive recovery n hit 102.9 in Sep'09 , a recovery of 55.8 %. Arround these levels , it met resistance from 200 WMA n could not conquer it. 200 WMA at present is hovering @ 96.4, which caps the upside for the counter. Stock is in overall downtrend n on downside it appears some support will be witnessed @ 64, 54.8,43.4,37.2,32 n ultimately @ 25. Testing of 25 in long term is not ruled out for stock but that testing should be taken as an opportunity to buy into the stock. Sell Out @ 65.6

Reliance Inds - Long Term View

Reliance hit its all time high @ 1626.05 in Jan'08 and from there it touched a low of 465 in Oct'08. It was a retracement of almost 94.9 % from its previous low of 403. From the low of 465, it made a panic top of 1245 in May'09 which was a retracement of 67.8 % of previous fall. Since May'09, Reliance is not able to move up and have been languishing. It is taking a support arround small rising uptrendline which is already tested thrice and it is facing strong resistance at 1150. 200 WMA lies @ 940. MACD is sloping downward n is ready to enter into negative terriotory if stocks looses some more weight. Stock is at crucial juncture where some more push by bears can trigger complete break down in stock.

Overall Strutcure of stock is triangle which means Lower Top n Higher Bottom. It will be in sideways trend for some more months to come. It is possible to see price of Reliance @ 500-535 band in case of severe correction. Only Grace for stock is sustainable price above 1150 n then 1245. Sell Out @ 1033.85

Update : 11th July 2011

As expected , stock was not able to move higher. Despite of bullish nature and all fund managers trying to push up reliance it did not buzz up and rather crack down. It is holding at a crucial support of 855 Rs which was july 2009 low and 50 % retracement level. Consistently below this level, will test of 763 Rs and subsequently other low levels. MACD has entered into negative territory now and is not showing any sign of reversal.

Reliance Weekly

Reliance Weekly MACD