Positional call – buy RELIANCE INFRA above 403 {closing basis} sl 340 target 460-525-600
holding period – 3-6 month
note – if stock able to close above desire level then only hold the delivery in this, if breakout not confirm and started to give negative close for 2-3 trading session and if come below 370 level then down side we can see 340-315 levels also.
Technical chart reading –
just now stock able to cross its 100 MA level of 385 almost, and given a positive bar above its 100 MA average, its having 200 MA level at 445-450 range, so still we can say that stock is trending according to its short term trend now and long term trend we can consider above 200 MA level.
Stock has made double bottom at 315 level almost, and there we can see it has formed “DESCENDING TRIANGLE” pattern on chart and able to break the triangle at upper side in a range of 380-385 range.
we can also see that it has formed the RISING WEDGE” pattern on chart, but yet it has not able to decide the breakout in chart, it may give breakout upside or downside also, so waiting with confirmation levels can help us to find a better trend in stock.
stock is also moving in bullish trend line channel on chart, so moving out of the trendline can produce breakout move in stock at either side.
recent development in RSI also indicating that its a kind of small divergence on chart now, but trend we still cant confirm till the levels satisfaction is not there.
overall basic technical study indicating that stock is near to its breakout level so if able to confirm the levels then only we can see up movement in a call, if it not able to confirm its levels then reversal can not be avoided.