And all the time for the past few days we all anticipated such a fall.. I am sure my readers could take advantage of this - either in short selling or at least exiting longs.
The market leader Reliance Industries has taken support at the previous low formed in Mar 08 at 2110/- but in the process has also broken an important support trendline.
This support trendline is actually a 'neckline' of the H&S formation visible more clearly on the weekly chart (not shown here). the break of this line must make the long term investors in this stock more than cautious.
Corrective price rises near 2250 can be used by investors to exit for the time being as the charts suggest that a close now below 2100 should give a minimum target of 1700!!!
Keep your fingers crossed!
CA Rajiv D Khatlawala
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