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.
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| Reliance Weekly |
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| Reliance Weekly MACD |
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