Reliance - Confirmation on Direction after three Doji - December 2020 tobe on Short Side
The Background Reliance has formed three #Doji candles over last four days of November-2020 series expiry. All these three Doji's were formed within the intraday price range of 1920-1980. This kind of formation on monthly expiry of a derivative series signifies that Reliance Industries is all set for a sharp movement on the side of the breakout of the price range. The Weakness First trading day of December series, Reliance finally broke the 1920 price range on the lower side during intraday trades, however, closed within the same range at 1929. Also RSI of Reliance slipped below 40 once again which shows the stock is still bearish and could see further correction unless we see divergence in RSI. This shows that there is a higher possibility of a breakdown in Reliance once there is closing below 1920 and this weakness could drag reliance down to test previous low of 1835. Upon closing below 1835, there is Fibonacci Retracement support at following levels: 61.8% - 1795 50% - 1...