Thursday, June 20, 2019

Reliance Capital – Ichimoku Cloud, amazing channels, Trade setup!

ADAG group stocks showed strong reversal on upside along with Nifty. It seems that Nifty after forming a topping Head & Shoulder pattern at the top achieved the target of the Shoulder near 11625 and reversed back on upside. We are seeing short covering and fresh long build ups.
It is amazing to see how certain stocks like Reliance Cap, Reliance Power, Reliance Infra are moving. Only if you have the risk appetite you can trade in these stocks. But see the application of Ichimoku cloud along with channels which worked out amazingly well.
Reliance Capital had showed a correction of more than 70% in just few months. Despite everyone believing that the stock is driven by news or events or rather operator it has been following channels simply beautifully.
Reliance capital hourly chart:

Low made by this stock was precisely at the lower end of the channel from where we saw a huge bounce back. This proves that nothing else but the collective thought process and crowd psychology is moving the market.
Also the stock continued to provide shorting opportunity everytime it touched the red base line and now it has finally managed to decisively break above the same. This hints that the low for the stock might be in place and we should start seeing recovery eventually.
Again, only a trader with high risk appetite should enter in these type of stocks with thorough research and analysis.
So, you still think the stocks are moved by news or events! Think again!!!
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