Technical Analysis on Reliance (March-April 2009)

Reliance is in an uptrend channel since 5th march till now. Formed a good number of bullish patterns adding strength to the channel so far.

Since last few trading sessions, reliance is showing bearishness to me. Here is the 5 min chart highlighting bearishness in my view.

Big Head and shoulders in aqua colour:

• Volumes are moderately increasing at the left shoulder, but should have been more in my opinion.
• Volumes are moderate when the price is moving up in head, which is good
• A bearish wolfe wave at the top of the head, more details below.
• While price is moving down in the head, volumes are expanding, which is good
• At up move of the right shoulder, volumes are low, which is good.
• At the right shoulder, volumes are increasing in the down move here, which is good.
• Right shoulder itself is another small H&S, details below.
• Over all a confirming H&S. Target for this pattern is 1615, but it is suggested to take short trades when channel support is broken convincingly on hourly charts.

Wolfe wave at the top of the head

• Shown with yellow from 15th April 1:50 PM to end of the day
• Good Symmetry and at point 5 volumes are high as required.
• Target is reached the next day.

Small Head and Shoulders

• Formed at the left shoulder of big H&S, shown in Blue -Grey color
• Volumes are accordingly with the pattern.
• Neckline is broken and target is reached in the same day.