This was the state of Reliance stock till end 2016
State of Reliance Investors pic.twitter.com/dDie3NLP8v
— Deepak Singh (@smarket) October 23, 2016
Reliance was a caged stock for 9 years
Reliance has not crossed resistance of 1150 since June 2008 pic.twitter.com/njsbmvfdTR
— Deepak Singh (@smarket) December 13, 2016
Then Reliance stock broke out in Feb 2017
The Breakout happened on Feb 22 2017 – see the chart below
Source: Chartalert.com
Here’s what has happened to Reliance stock since then
Source: Chartalert.com
When a stock breaks out after a long long time, then just the sentiment change itself can drive the stock higher.
Is the move in Reliance stock surprising?
I can give you simple fundamental logic of why Reliance will move up over next 2 yrs. Because Institutions will buy like crazy 😜
— Deepak Singh (@smarket) February 22, 2017
This is what Breakout does
Let me give you example: it was frustrating experience to own Reliance stock over last 8 years..it will be super rewarding over next 1-3 yrs
— Deepak Singh (@smarket) February 22, 2017
In the financial market, nothing is certain. But following Price Action does give you an indication of what’s happening right now and how it might shape behaviour of market participants in time to come.
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers