Reliance Industries – Short-Term Bounce, Bigger Zigzag Unfolding

1 set

Wave Structure
The decline from the all-time high at 1608.80 to 1114.85 unfolded in a clean 5-wave impulse. Rather than a completed W–X–Y correction, this is best viewed as Wave A of a higher-degree zigzag (5-3-5).
The subsequent rally into 1551 was a clear 3-wave move, marking Wave B. With this structure, the larger Wave C is now favored to be unfolding to the downside.

Current Setup

• The drop from 1551 is impulsive, not corrective, which supports the case that Wave C is already in progress.
  
• Price is testing the MA200 and printed bullish RSI divergence (higher lows on RSI vs. lower lows on price), suggesting near-term exhaustion.
  
• This favors a short-term Wave 2 bounce before further downside unfolds.
  

Outlook

• Short-term (bullish): Relief rally toward 1390–1420 possible as Wave 2 plays out.
  
• Medium-to-long term (bearish): Once Wave 2 completes, downside is expected in Wave 3–4–5 of C, with potential targets revisiting 1100 or lower.
  
• Invalidation: A sustained break above 1551 negates the bearish outlook and would suggest the correction has already ended.
  

Summary

• Short-term: Bounce likely.
  
• Big picture: Bearish zigzag not yet complete.
  

Disclaimer: This analysis is for educational purposes only and does not constitute investment advice. Please do your own research (DYOR) before making any trading decisions.

16 set

Trade attivo