Reliance Capital: Would you carry yourself up

Techno-Funda in Sync

I am a firm believer of two things.

• Data never lies, difference comes in the perception of the reader.
• News comes later (include news readers ;P)

Charts are nothing more than plotting of human emotions on board aka data and we have a story for ourselves to read, understand and make something out of it.

The guy in question: Reliance Capital

In the weekly chart below, here are the few key points

1. 200 EMA (Dynamic LOC)

2. You would notice, from November, 2010 (marked 1) till May, 2010 (marked 2) prices stayed below 200 EMA

3.  Period between Sept, 2014 and March, 2015 area (marked 3) where, both bulls and bears were in tussle and that happened to be at 200 EMA

4.  In Jan, 2016 (marked 4), happened a breakout, however a failed one, again at 200 EMA

5.  Finally, bulls took charge and stock gave a breakout in July, 2016. There was a triangle breakout, not marked on chart.

6.  Weekly candle of 12^th Aug, 2016, made a retest of 200 EMA and the up move started.

7.  January, 2017, stock again made a move above 200 EMA and made a nice base for itself in following weeks.

8.  Stock started its upward journey and do notice the gradual increase in volumes (marked in blue oval)

9.  RSI has again entered its bullish zone of above 60

Finally comes the news

Now that, 200 EMA is behind us and retested, stock has positioned itself in a channel and looks great to capitalize on the base it has made for itself at 200 EMA. Can't help to keep the trader in myself happy, would consider Rs.485 OR channel breakdown as my SL.