Reliance Inds – Strong Support or Head and Shoulders ?

There could be two ways a technical analyst will look at this chart.

->  A head and shoulders with neckline at 760.

-> Major bottoms at 760 band for last 1 year.

Ways to trade it

Buy at 775-790 stoploss of 755-760 with upside target of 850 or higher.

Reverse trade if breaks below 755 short with a small stoploss.

Given the fact the stock has made a huge base between 700-750 before the risk reward is favorable for bottom buying.

Disclosure : Will be waiting for follow up action to buy above 800.

Nooresh Merani

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