RELIANCE in a Trading Range

I am discussing here a simple Technical Analysis example . Here we will see opportunity for buying or selling in Reliance .

For last 3-4 months reliance is Trading in a range , This range is getting contracted day by day , We try to make a trading range Area for it , buy joining two consecutive Highs and And lows . You can see that this line at up and bottom is acting as support and resistance levels for Reliance .

Click Image to Enlarge ...




You can see the live chart here

Once Reliance breaks up or down of this Channel it will take a direction . If reliance Breaks up of this Channel , then its a Buy signal , If it breaks down this channel then its a SELL signal . Inside this , Better not to trade for a long move .

Understand that what ever i talked should not be taken as a word on stone , But probability wise , we have better chances .

At the bottom you can see Two indicators RSI and SLOW Stocastics . If someone want to trade Reliance for short period , He can sell RELIANCE once Blue line crosses Red line in down direction for the second indicator . That will signal that Buyers have taken control over sellers .

This is a simple analysis of a stock using Technical Analysis . Understand that Technical Analysis gives you some idea about what can happen , Its not the confirmation ever . You should always be ready to be proved wrong and use proper Stop loss placed and ready to take losses once your are proven wrong.