Reliance outlook short term

Reliance: Support: 1015 – 940 – 895 Pivot: 1060 Resistances: 1133 – 1176 – 1255

Reliance Buy above 1110 Stop @ 1045 Targets @ 1200 – 1320 – 1440

Reliance looking at the weekly chart in the end of 2008 and starting of the 2009, it has shown the Symmetrical pattern formation and have started from point A of 495 and have tested the higher level of 752 where the difference of both points comes to 257 and after the break out above the trend line at 682 have expected to test 940 on higher side, but if we look at 161.8 % rise of the difference it comes to 415 adding the same bring to the target of 1097 which it tested and have been in the consolidation phase. On the higher side it tested the level of 1190 and has been in the side way move in the range from point D of 1190 on higher side and taking support of point C at 858, again forming the similar pattern of Symmetrical Triangle Formation. Currently it’s just below the trend line resistance of 1100 and 1110 and if sustain trading is seen above the higher level of 1110 will given the confirmation of the Triangle pattern breakout. The Difference if calculate comes to point D of 1190 and lower level support of point D of 858 which is 332 points. Adding the same from the breakout point of 1110 indicates the higher level of 1440 on higher side. Stochastic and the RSI which have been moving positive and is moving towards the over bought zone where further uptrend is expected in near term. First resistance is the high crossing at 1120. Second resistance is the high crossing of 1250. First support is the low crossing of 1070. Second support is the low at 1040.

Comex Gold: Support: 1119 – 1101 - 1089 Pivot: 1131 Resistances: 1149 – 1161 – 1180

Comex Gold Sell @ 1140 Stop @ 1148 Targets @ 1120 – 1100 – 1082

Gold if we look at the chart form November 2009 where the all time high was tested in Dollar term at 1225 $ and after the same have give a sharp selloff and tested the lower level of 1080 $. The sharp sell off some profit booking was seen from the same level and tested the level of 1160 $ which was the 61.8 % retracement of the fall this was the formation of the Left Shoulder. After testing the level of 1160 $ have been in the side way to down side move where the previous support of 1080 was broken and have tested the level of 1044 $ on lower side but sharp buying was seen from the same level again have tested the level of 1142 $ where the neck line can be drawn from the previous level. This is the formation of the Inverted Head & Shoulder pattern and is in the formation of the Right Shoulder. If we look at the fall from 1160 $ have formed the wave formation which was in the five wave down side and on the upside have been in the corrective wave. Stochastic and the RSI are sustaining in the higher zone and is turned flat where if the trading is seen on short corrective move will give the down side intersection which will given a good confirmation of the right shoulder formation. First resistance is high crossing at 1148. Second resistance is the high crossing at 1160 First supports is the low crossing at 1128. Second support is the low crossing at 1115.