This large-cap elephant is ready for a trumpet; watch out!
The stock of Reliance Industries Ltd advanced 3.26 per cent during Thursday’s trading session
The stock of Reliance Industries Ltd advanced 3.26 per cent during Thursday’s trading session and also, made the day's high of Rs 2,497.40 level. The stock had made an all-time high in the month of October 2021 and thereafter, corrected nearly 20 per cent from its all-time high. However, with a strong rebound in the frontline indices, this heavyweight has zoomed over 14 per cent from its recent low.
Recently, the stock had witnessed a trendline breakout on Thursday. Furthermore, the breakout was witnessed with a sizeable bullish candle, which was accompanied by above-average volumes. An interesting thing is that despite the strong move witnessed in the stock, it is not in the overbought zone. The stock is trading above its 50-DMA and 200-DMA. This setup is indicating a clear uptrend in the picture of the stock.
All the major indicators are confirming bullish directions in all the timeframes. The 14-period RSI has marked a fresh 14-period high as it’s near the 60-mark and pointing northwards, which thus, supports the positive bias. The MACD line is trading above its signal line and zero line, which indicates a positive trend in the stock. Moreover, the MACD histogram is rising steadily and is above its prior high.
The trend of the stock is bullish. Meanwhile, the stock is up by 1.56 per cent on an MTD basis while it is 4.79 per cent up on a YTD basis.
The above-mentioned technical evidence suggests that the stock is likely to continue its northward journey.