One of my online friend and a reader of my blog put an intersting question on one very good forum...here is his question followed by my answer :
"yesterday everyone was bullish on reliance. some analysts and chartists predicted that it could well go past 2400 and even touch 2500.now with the court decision today it closed even below 2200.so in such cases what is the reliability of charts and what would happen to those who just went long on reliance based on bullish patterns shown on charts ?"
MY ANSWER:
as per me,as on friday ril chart was technically neutral.i mean by saying this ,that though there was no buy call as on friday's close...there was neither a sell call..but if you had gone through my analysis on my blog since last few days..and even here too, on friday...there were clear cut warning signals..with clear weakness in biggies like sbi..bhel..larsen..now my point is that whatever may be the tgts given on ril..one must have to tighten stoplosses on ril's long positions.and eventhough daily charts were not weak..any weakness must percolate from lower term charts to higher term charts,,so in reliance THERE WERE TWO SELL CALLS GENERATED on intraday charts..1 at around 2330 2 at 2270,so a learner ust try to learn combination of different period of charts,other major stocks,markets as a whole,so as to protect oneself.jaisainath.
NIFTY : a decisive close below 4360 and 14500 for sensex,will create panic ..even to the diehard bulls.
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