Reliance chart showing strength

I am not sure if this is just me who is seeing strength building up in RIL and if it has to make a C&H formation in the 2 year weekly chart then it has to touch 2400 within coming 2-3 weeks... can we do that?

Please see the Daily (6 months) chart and weekly (2 years) chart attached



EDIT:
I think if it is able to cross 2400 in October then no one can stop it to fly to the next level around 2700-2900, above that to the all time high of 3200
For sure if RIL goes up then who can stop NIFTY/SENSEX to cross 5500/19000..

hello vikas.

almost all stocks made C & H pattern. The base being oct'08 to mar'09.

so, I don't attach much importance to it.


cheers.

Reliance chart showing strength - or weakness?



Hi Vikas,
Firstly, I haven't seen much use of log scale in TA. So your finding of CH pattern may not be valid.

Below are my views and findings on daily chart of RELIANCE:
At point A, we have a upthrust(or pseudo upthrust). This is trap move to get retail traders into a poor positing. Just two before A, we have high volume, wide spread updays that close on its high. If these had represented buying, why would we see "No demand" upbars at point B?

Similar explanation goes for C as given for point A.

Now At D, we again have wide spread, very high-volume with the bar that closes on its high. If this was actual professional buying, how come the next bar was so below it?

If my interpretation is correct, these points mean that the ownership of stock is being transferred from smart money to dumb money.

BTW, NIFTY index has today breached a support line. So be careful.

Note: I do not hold either long or short positions in any instruments, neither reliance equity shares, futures, options, or nifty derivatives.

ahhh... I missed that... thanks for your analysis... just a small correction..


>>> Now At D, we again have wide spread, very high-volume with the bar that closes on its LOW.


EDIT: It could be high if you meant high from previous day's closing

Re: Reliance chart showing strength - or weakness?

Bunny, chk out this post where I replied to yr question on usage of Log scale.

http://www.traderji.com/equities/28224-trading-crossover-bb-36.html#post371587

Happy Trading

Reliance looking good. Looks like the almighty wave 5 ready to take off

Bet you I suggested to BUY at 2100 already almost touched 2200 today