Analysis of Reliance Industries Ltd (5-Min Chart)
The chart shows Reliance Industries Ltd. on a 5-minute timeframe with price action, volume, trendlines, and RSI (Relative Strength Index) indicators.
Key Observations:
Trend:
The stock is in a short-term downtrend, forming lower highs and lower lows.
A descending trendline resistance (purple line) is visible.
Support & Resistance Levels:
Short-term Resistance: Around ₹1,250-1,255, where the stock is testing the trendline.
Short-term Support: Near ₹1,247-1,245, as seen from consolidation at this level.
Long-term Support: If the price breaks ₹1,245, the next strong support might be ₹1,230-1,220 based on historical price action.
Long-term Resistance: Above ₹1,270-1,280, a reversal towards ₹1,290-1,300 could be seen.
Indicators (RSI & Volume):
RSI (Relative Strength Index): 37.61, indicating the stock is approaching the oversold zone (<30).
Volume: Decreasing, suggesting weak selling pressure and possible consolidation before a breakout.
Trade Setup:
Bullish (Long) Trade Setup:
Entry: Above ₹1,255 (Breakout of trendline resistance).
Target: ₹1,270-1,280 (Short-term), ₹1,300 (Long-term).
Stop-loss: Below ₹1,245.
Bearish (Short) Trade Setup:
Entry: Below ₹1,245 (Breakdown of support).
Target: ₹1,230-1,220.
Stop-loss: Above ₹1,255.
Conclusion & View:
Short-term View: Watch for a breakout above ₹1,255 for a bullish move or a breakdown below ₹1,245 for further downside.
Long-term View: If the stock sustains above ₹1,270, it can target ₹1,290-1,300; below ₹1,220, it can see more weakness.
Risk: Tight stop-losses recommended, as the stock is near key levels.
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