Reliance W-Patterns and Fib. Extensions

11 Mar 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 Mar 2021

Not

A few examples

11 Mar 2021

Not

11 Mar 2021

Not

Now this is what we should ideally look for:

11 Mar 2021

Not

11 Mar 2021

Not

11 Mar 2021

Not

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

11 Mar 2021

Not

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