Reliance at a make or break level
RELIANCE is at a make or break level. It has respected the lower trendline since a long time, but it now faces strong resistance due to sentimental factors as well as rejection of 2200 psychological level. With the AGR dues hearing not being too favourable for Jio and the final verdict expected on August 17th, Monday's trading session should be quite crucial for RIL to keep its flawless uptrend intact.Historically, the stock has given a fakeout fake out before retracing and then hitting a new ATH after a few weeks. Monday me be one of two things:
- Fake out.
- Retracement.
- Continuation of the uptrend (which may later bring up the discussion about fake out vs break out once again).
Adding to the uncertainty, the past week has not seen very healthy volumes, especially on the trendline support.
While the trend is not bearish yet, I am not confident about entering fresh longs just yet, especially due to news-based factors.
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