May 18, 2015

Diamond Pattern of Reliance Communication

  • Rcom is in a strong down trend, But stock can give a bounce if stays above the daily cloud and 20 Week SMA.
  • Bulls need a Diamond Bottom, For this price need to close and stay above the daily cloud after breakout from the pattern. 
  • This pattern is mostly classified as either Diamond Top or Diamond Bottom reversal patterns. But if price goes with the trend it may work as a continuation pattern here. Let's wait for price to move out of the pattern. Price should get out of the pattern with volume increase otherwise there is no significance for the pattern.

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