We all have witnessed Sensex rally in last few weeks. Major stocks have participated in this rally except the big one – Reliance Industries Ltd. (RIL). Let's see the reasons below.
We're taking the technical chart of RIL using Ichimoku indicator.
The first resistance it had on around Rs.1,000 mark – the kumo resistance. Chikou Span (CS) tried to cross it twice in the beginning of July 2010, but failed; although closing price managed to close above kumo. But real kumo breakout rule is when CS AND pricer closes above kumo.
Now again, 4 days back, CS failed to cross kumo lines again. The closing price also failed to cross Kumo. Now, the price is moving downwards, where it will get its first support on Kijun sen line.
Clearly, Reliance will move upward ONLY when CS & its closing price closes above Kumo.