Reliance Industries shares close to all-time high. What should traders do?
Reliance Industries, on Tuesday, continued to rally for the second straight day today taking it within kissing distance of its all-time high level of Rs 2,856.15 touched on April 29, 2022. During the day, RIL shares touched a new 52-week high of Rs 2,764.50 after ending Monday's session with a jump of 3.78%. Up over 17% in the last 3 months, Reliance stock has had a good run for the past few weeks but is still trading in a broad-based consolidation range, which will break out only above Rs 2,850 level.
«Today’s price-action has made a breakout from its upward trending channel which means, one can start accumulation at this level as well. The stock has also started to walk the Bollinger Band indicator on the weekly chart, which too is a very positive sign,» said Rahul K Ghose, Founder & CEO of Hedged. What is further encouraging for RIL bulls is that even if some profit booking is seen owing to the overbought momentum indicators on the daily chart, there is a demand zone around the Rs 2,600 level, which will act as a support for it.
«As long as Rs 2,540 level is held, one should look to go long on this stock with targets past its previous all-time high level,» he said. Technical analyst Mehul Kothari of Anand Rathi pointed out that RIL shares have confirmed a trend-line breakout above Rs 2,650 mark and have the potential to take out an all-time high. On the downside, support is at Rs 2,650 and a breach of the same will negate the bullish structure.
Read more on economictimes.indiatimes.com
