February 13, 2011

  • First chart is the weekly chart which shows the long shadow of the weekly candle. This was the candle pattern which so many analyst have been waiting to see. This set up has worked well in the past as shown in the chart.
  • Weekly line chart too shows a possible trend line support. Price has made an upward turn from this trend line in the past.
  • Resistance band in weekly chart is between 5350 - 5530 this band has the main levels which were broken during the down trend which may act as resistance now.
  • Bears will be comfortable to hold on to the short positions till price does not close above 5 week low ema.
  • For bulls they have given a bullish engulfing pattern in daily chart. This set up was failed once during this down trend. We have to see if this works this time.
  • Reliance weekly is showing a negative fall after a major trend line break.
  • Important support is at 858 levels.
  • Right now weekly candles are showing a consolidation pattern. If the stock moves above 930 bulls may get 950. Breaking above 950 can give a move towards the broken trend line.
  • If the recent lows are broken we may see 958 levels in reliance. 


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"All through time, people have basically acted and reacted the same way in the market as a result of: greed, fear, ignorance, and hope. That is why the numerical formations and patterns recur on a constant basis."
—Jesse Livermore