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Monday 4 March 2013

Reliance–At critical support

Readers
I wrote about Reliance in my previous post here. This is a classic example of stock falling continuously after a rally based on results. Reliance continued its downfall for several days and the stock is now at its critical support levels.
Results Pattern !! Why you should avoid buying stocks on results day - Reliance Example

Daily Chart Observations

RSI indicating a downwards move below 30 to a support level
Stochastics has given a sell hook
Fall on increasing volumes
MACD negative
Support levels are 807, followed by 800-795. Below this levels the stock will fall down by another 20-30 points to 770-760 levels

Weekly Chart Observations

RSI negative and indicating further downmove
Stochastics pointing down indicating further downmove till 20 levels
Fall on increasing volumes
MACD bearish crossover
On any day, please keep these levels and go short if supports are broken.

1 comments:

Hey, thanks for the information. your posts are informative and useful. I am regularly following your posts.
AUTOMOBILE CORPORATION OF GOA LTD

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