Reliance : Uptrend to Continue

Reliance started its long awaited uptrend after  correcting /consolidating for almost a year from May 2014 to May 2015.

On the weekly charts, Reliance has been correcting after achieving its inverse H&S breakout target at Rs. 1067 and is likely to resume its uptrend towards the next target of  Rs. 1130.

The TTO shows Bullish Alignment formation on the charts, indicating the next up move is likely to be swift and impulsive.

There is a possibility of Reliance moving to higher levels of Rs. 1500 in the next few months, coinciding with the launch of its 4G services.

Stock Selection and Trade Strategy Using TTO

The Integrated Trend Analysis using TTO provides quick visual reference for stock selection in all time frames with high accuracy.

The main criteria for stock selection includes :

1. The stock should be in long term up  trend,
2. Medium term trend should still be positive and
3. The short term trend should have reversed from oversold position.

The overlaying of multiple TO on the same indicator give a highly accurate point of entry for such stocks, which are on the verge of breakout.

Taking the example of ABNUVO which was indicating a reversal and was pointed out  our post dated June 19, 2015  when the stock was trading at Rs. 1745 :

 

The stock has appreciated to Rs. 2183 on July 28, 2018, an appreciation of Rs.438 (25%)  in about a month i.e.  return of  300%  in a year.


This a totally risk free return base on delivery trade. Needless to say a Futures trade   with tight risk management can increase the return multi fold.