April 24, 2011

RELIANCE - SELL the weekly stochastic

  • Stochastic in reliance weekly chart is approaching 80% levels. This range of reliance has give good short trades at the higher levels.
  • Now if stochastic turns down again we will get another sell.
  • Price in Daily chart is fighting against a resistance line. Price has come up from 885 to 1065 during the current up move. Price has broken that trend line. Now if price does not break and close above the resistance line we will get a sell.
  • So what to do now.
    • Look for weakness below 1020 to  SELL (confirm with the weekly stochastic it should trigger a sell)
    • Stock will be strong on a close above1050 one can try to go long for 1065 and more.

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