RNRL - Symmetrical Triangle Failure

Well, who am I to battle the management and they can do some real dodgy stuff. Like have board meetings on Sunday and come up with such adverse decisions that can shave off 30 percent of a stock's value in a day.

RNRL shareholders would get 1 Reliance Power share for every 4 shares held, thus valuing the share at Rs 43. So RNRL falls and the symmetrical triangle fails. Wave 4 also penetrates Wave 1 negating any impulsive intention of RNRL. So, what was looking at as Wave 1 has now become a corrective, and the expectation is that RNRL would move in a consolidated B ranging between 51 and 45.

RNRL - Symmetrical Triangle Break False or Real?

I am asking myself this question. Symmetrical triangles take a long time to complete and are replete with false breakouts. Friday was a late selloff in RNRL, with rumors about a 4 for 1 merger with RPL, causing the stock to close at Rs 63. As this is being posted, a meeting of both boards is in progress to consider the merger and decide the ratio.

So, will it be that Monday this fall would a proven false breakout or would it be a failure of a bullish symmetrical triangle. I have seldom seen stocks fail in their 4th waves. It is usually in the 3rd wave of the 5ths that stocks fail to reach their full potential.

RNRL in Symmetrical 4th Wave Triangle

Here's a simple explanation for a bullish view on RNRL. I have used Elliot Wave Analysis. Currently RNRL is in the 4th wave corrective and a symmetrical triangle. Once it breaks out it is likely to touch the previous significant top of 72. Once it crosses 72, several new targets open. In any case 61 is a strong support for RNRL. We see that the 3rd wave is almost equal to the first, which means that the 5th wave would be explosive reaching targets of even 95 and above.

Nifty Update for July 31 - Inder Bhatia

The Indian market opened gap-up on global cues and closed near day’s high. We had seen bounces from support level of 4164. I had mentioned that above 4300 Nifty would test 4500 in the coming days. The Nifty now faces resistances near 4380-4410 levels. On the lower side 4260-4186 would act as the support zone.

Weekly Hot Call: INFOSYSTCH now ready to fire.

RDX Call: RNRL heading for 115/121.