Technically, How high Reliance can go in near term. Well, Here’s what Charts have to say.
Let us look at the Reliance Chart
As you can see in the chart above: Reliance stock was trading in a range between 900 and 1140 during 2009-2011 time frame. But the stock broke down below 900 in June 2011. Post breakdown- for two years Reliance under performed and remained below 900.
But with Gas pricing reforms – Reliance seems to be turning around. Reliance has broken out above 900 and if stock sustains above 900 – then stock has potential to rally to 1140 – the next resistance level. It’s likely that Reliance may start trading in the same zone i.e. 900 on downside and 1140 on the upside. The real momentum will emerge above 1140 which seems unlikely before elections.
In near term: Reliance appears buy on declines near 900 and one can look for target of 1140.
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