- There is a potential double top formation in nifty futures line chart.
- If the index stays below 5452 will work well. Break of 5426 will give momentum for the down move.
- If price goes above 5471 the pattern is invalid.
August 6, 2010
RELIANCE INDUSTRIES WEEKLY CHART
- Reliance Industries is trading close to an important support line.
- It is a good opportunity to go long with a small stop loss.
- One should also consider the opportunity of going short if the support line breaks.
- Both trades are possible Safe entry above 1025 go long. Below 975 go short.
- The daily candle has given a doji showing indecision.
- The hourly chart has been doing a side way's consolidation for quite sometime now.
- The hourly line chart shows the importance of a trend line.
- If there is a correction from here the trend line may support the index again.