A pullback on weekly uptrend, entering in a daily demand area.
Reliance has a long setup on daily chart
DAILY PRICE CHART RELIANCE INDUSTRIES
On weekly timeframe, current price appears testing 20 SMA in a strong uptrend.
Trade Setup Considered: RELIANCE @ 1470
Entry @1477. The precise entry may vary. One may buy on an intraday (15m) pullback after the price leaves the demand area, when it drops to demand zone, but in that case the trader may miss the trade if the stock does not fall back to ideal buy point.
Stop @1452. Stops should be trailed using 2H chart to move stops higher as the stock posts higher swing lows.
The trade needs to be actively managed as it progresses.
Disclaimer – This is not a trading recommendation. Please refer to our full disclaimer text.
As we write the article the trade was triggered, with the entry at 1477. For the traders looking for a pullback entry, the stock gave them a better price point 1474 a few minutes later. We shall post updates on this trade as it progresses.