Next Patient is Reliance Infra
Weekly chart of Reliance Infra.
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This indeed a very weird chart for me. In April 2009, it has very good volumes and almost got triplled within couple of months.
But, afterwards, it is trading between a range; or to be more precise, for me it is trading in double range.
Its support level is around 950 and it is having resistance at 1200 and 1400. Off course, the primary resistance it at 1200 which has to be crossed over, before I can think of this script to show its power of going up, if it really has any.
Currently, on weekly basis, it is trading at 1033 levels; quite near to its support levels.
It made a low of 980 during the previous weak and now appearing to have taken support.
But still I am not ready to enter long. Because, this is the 6 or 7 time, it is going to test its support levels since july 2009. While the market has been trading at its high, this script is still struggling in maintaining its support. And, I can not explain it in words, but in my mind, I have an opinion that may be this time, it may violate its support levels, specially if Nifty goes down. But, anything can happen; and it is really not wise to predict. In case, the script accept the support, I will try to enter long; but with a very cautious approach of not expecting huge profits.
Now the daily chart of Reliance Infra
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This is the first time since mid July 2010 that CCI(14) manages to be in positive zone (6 points). All previous attempts of this script failed in this regard. Appears to have taken reasonable support at 980 levels and currently having upside move with reasonable support of volumes. Can this be a good entry point for going long in this script. I am a little bit confused and scared to enter at these levels.
Reason one - Almost everytime, when this script came down to these levels, it did tested its support at 950. Therefore, this time too.
Reason Second - Markets are at their highs; and many are expecting a downside move in Nifty. In case, that happens, the script may have to face the overall negative sentiment
Reason Third - I can not explain, but I am scared that it is very likely to violate its support levels of 950.
Therefore, just be watching this script too.
Big brothers, please do give your guidance and advice on this amateur analysis of mine.