Reliance Capital has been moving in a Northward Sloping Channel.
It formed a Ascending Triangle & then gave a Brilliant Breakout Yesterday.
Since the Breakout has happened with decent volumes, a small follow through is expected till 740/760 levels.
The stocks behavior clearly shows that breakouts with high RSI usually undergo a slight pullback.
740/760 levels are also resistance zones, hence i expect the stock to undergo regression to the mean of 20 SMA.
Approximately pulling it back towards 700/690 zones.
Short this stock if it gaps up & moves in this range & sit back with a very small 15 point SL from your Entry.
Strict Stop at 775, for targets of 700/690.
It formed a Ascending Triangle & then gave a Brilliant Breakout Yesterday.
Since the Breakout has happened with decent volumes, a small follow through is expected till 740/760 levels.
The stocks behavior clearly shows that breakouts with high RSI usually undergo a slight pullback.
740/760 levels are also resistance zones, hence i expect the stock to undergo regression to the mean of 20 SMA.
Approximately pulling it back towards 700/690 zones.
Short this stock if it gaps up & moves in this range & sit back with a very small 15 point SL from your Entry.
Strict Stop at 775, for targets of 700/690.