RELIANCE Structure Analysis & Trade Plan

🔍 Chart Analysis

The chart for Reliance Industries Ltd. (RELIANCE) on the Daily timeframe shows the stock trading within a horizontal consolidation range since early August.

Pattern: The price is trapped in a Rectangle Pattern (consolidation range). Within this range, a visible 'W' pattern (Double Bottom) is forming between September and October.

Range Boundaries:

Resistance (Supply Zone): The upper boundary is around ₹1,420 - ₹1,430.

Support (Demand Zone): The lower boundary is around ₹1,345 - ₹1,355.

'W' Pattern Neckline: The neckline for the small 'W' pattern (the high between the two bottoms in September/October) is approximately at ₹1,400.

Current Position: The stock is currently trading just under the 'W' neckline at ₹1,381.70, near the midpoint of the larger consolidation range (indicated by the dashed line).

The Market Structure Shift (MSS) for the overall range would only be confirmed upon a decisive break of the main Resistance or Support. The small 'W' pattern suggests a potential short-term bullish move within the range, aiming for the upper boundary.

📈 Trade Plan (Range Trading & Short-Term Bullish Bias)

The plan has two components: a short-term move based on the 'W' pattern and a longer-term plan for the range breakout.

1. Short-Term Bullish Scenario (Within the Range)

This trade is based on the small 'W' (Double Bottom) pattern completing and pushing the price towards the main range resistance.

Entry Condition: A decisive close (Daily) ABOVE the 'W' Neckline of ₹1,400.

Stop Loss (SL): Place the stop loss below the recent swing low that forms the second bottom of the 'W', for example, around ₹1,365.

Target (T): Target the upper boundary of the main consolidation range at ₹1,420 - ₹1,430.

2. Breakout Plan (MSS Confirmation)

The most significant moves will occur when the stock breaks the main consolidation range.

Confirmed MSS to the Upside (Trend Continuation):

Entry Condition: A Daily close and sustained trade ABOVE ₹1,430 on strong volume. This would confirm the Market Structure Shift (MSS) to the upside.

Target: The minimum measured move would be the height of the range (₹1,430 - ₹1,350 = ₹80) projected upwards, yielding a Target ≈ ₹1,510.

Confirmed MSS to the Downside (Trend Reversal):

Entry Condition: A Daily close and sustained trade BELOW ₹1,350 on strong volume. This would confirm the Market Structure Shift (MSS) to the downside.

Target: The minimum measured move would be the height of the range (₹80) projected downwards, yielding a Target ≈ ₹1,270.

⚠️ Risk Management

Trading at the current price of ₹1,381.70 is risky as it is in the middle of the range.

Priority should be given to waiting for either the 'W' neckline (₹1,400) to break for the short-term target, or for the main range boundaries (₹1,430 or ₹1,350) to break for the larger trend trade. Wait for volume confirmation on all major breakouts.