RELIANCE : BET ON FNO AND SWINGTechnical Analysis of Reliance Industries on 1-Hour Chart
Overview of the Chart
The chart represents Reliance Industries on the 1-hour timeframe , highlighting key concepts such as CHoCH (Change of Character), demand zones, and the golden retracement zone.
Tools Used:
Price Action : Key highs/lows, retracement zones.
Demand Zones : Mitigated demand areas.
Golden Retracement Zone : Optimal entry for Wave B based on Fibonacci levels.
Swing Target : Projected target for Wave C.
Key Levels and Concepts Explained
Extended Retracement Zone (Deep Retracement): ₹1,261.20 – ₹1,252.70
This zone marks a potential support area for buyers after a correction in Wave A to B.
Buying Tip: Look for reversal signs in this zone.
Stop Loss: Below ₹1,252.70 to manage risk effectively.
Golden Retracement Zone (Wave B): ₹1,241.30 – ₹1,261.20
Located at the 61.8% Fibonacci retracement level, a high-probability area for a reversal upward.
Buying Strategy:
Enter within this zone if price shows bullish signs like engulfing patterns or pin bars.
Stop Loss: Just below ₹1,241.30.
Target: Swing high at ₹1,341 – ₹1,354 (Wave C).
CHoCH Zones:
Failed CHoCH: Price rejected near ₹1,273.75 and corrected lower.
Demand Zone: Strong demand needs to emerge at ₹1,261.20 for a reversal upward.
Tip: Look for bullish confirmation near demand zones or the golden retracement.
Swing Target Zone: ₹1,341 – ₹1,354
Represents the projected target for Wave C if the retracement zone holds.
Partial Profit Tip: Book profits near ₹1,341 – ₹1,354 and trail stops for further upside.
Stop Loss Strategy
Stop Loss on Failure: Below ₹1,241.30.
If price closes below this level, the bullish setup is invalid, and traders should exit to limit losses.
Buying Tips at Key Levels
Primary Buy Zone: ₹1,241.30 – ₹1,261.20 (Golden Retracement)
Look for bullish confirmation like pin bars, engulfing candles.
Stop Loss: Below ₹1,241.30.
Target: ₹1,341 – ₹1,354.
Aggressive Buy Option: ₹1,261.20
Scale into positions near mitigated demand with tight stop losses.
Key Observations
Wave Structure: Price is in Wave B (corrective phase), aiming for an upward Wave C.
Demand Zone: Buyer defense at the golden retracement confirms bullish outlook.
Risk Management: Always use stop losses to avoid significant drawdowns.
Summary of Key Levels
Key Levels Actions
₹1,241.30 – ₹1,261.20 Buy Zone (Golden Retracement)
Below ₹1,241.30 Stop Loss
₹1,341 – ₹1,354 Swing Target Zone
By following this plan, traders can align with price structure, optimize risk-to-reward, and trade effectively.
