Friday, June 20, 2014

Reliance Capital: Worthwhile Learning

Once in a while, it is always preferred to have a look at one such chart, that developed certain patterns on charts, and reacted to it, making worthwhile positional trades. One such chart at the moment is that of Reliance Capital. Let's a look:

image

After falling from 500 to 300 in the first half of 2013, and then going sideways in a trading range, it also made a triple bottom at around 300 and finally broke out of it. Just observe the speed with which the target of the pattern of 500 was achieved. And it doesn't stop there, but breaks above 500 and hits 650 with similar speed. Such moves make winning trades if we are riding them, or are even great lessons (for the future) in case we missed out on them. Incredible chart pattern and corresponding moves, isn't it?

No comments: