Reliance W-Patterns and Fib. Extensions

11 thg 3, 2021

W-shaped patterns work best at the bottom of a major downtrend but they can also be seen as a trend continuation patterns. On this weekly chart there are three W-shape bottom formations that appeared in 2018, 2019 and recently in 2021 and all the three appeared with in an existing uptrend.
In such a case we can play this pattern with conservative targets. In the last two occasions the stock rallied up to 1.27-1.618 extension levels. In 2021 too we can expect these targets which come at around 2514-2699.

Hope this small analysis will be useful.
Regards

11 thg 3, 2021

Ghi chú

A few examples

11 thg 3, 2021

Ghi chú

11 thg 3, 2021

Ghi chú

Now this is what we should ideally look for:

11 thg 3, 2021

Ghi chú

11 thg 3, 2021

Ghi chú

11 thg 3, 2021

Ghi chú

In cases like above, when the momentum is very strong, often markets retest on a lower timeframes.

11 thg 3, 2021

Ghi chú

I hope these examples will bring some clarity on this topic.