Feb 282011
When Reliance announced the deal with BP there was quite a bit of excitement amongst the analyst community. Some even thought this was a game changer for the stock. But here is the stock dipping under the pre-deal announcement levels.
Reliance - Daily Chart
If the stock closes Rs 10 under Friday's close, the deal essentially would mean nothing for the stock! What is quite obvious from the chart is that the gap resulted on February 22nd is nothing but a common gap and has very little potential, if any, to reverse the down-trend of the stock.
3 Responses to “So much for the Reliance-BP deal!!”
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Hear, Hear…
Are the markets in a band of some sort? Roughly 400 points on the Nifty? Or 1000 points or so on the Sensex?
If it is in a band should the strategy be sell at the higher end of the band and book profits at the lower end but not vice versa?
If it is in a band, what would be the likely time period for the break out?
Any comments on the Ides of March phenomenon? (for this year) 🙂
Regards.
Agile,
The market looks like ranged and the rules of range trading near its boundary can be applied with strict stops. But under the hood, things are different. No comments on Ides of march 🙂
Cheers,
Jai