Reliance intraday move on 15th October 2007

Another setup simple channel was formed in Reliance on Monday, the 15th. This time though it looked initially as it a wrong idea was passed on to the people on chat as the channel was a little too wide (30 pointer). And with less than an hour to go, the move was never expected to come. But the major factor in the market yesterday was that the market was rising steadily without Reliance participating. And as expected and history has justification to it that Reliance moves at the end, Reliance did come with a breakout and a little pullback to touch the channel and then a final break to give complete target.

Perhaps for anyone not understanding the charts, these moves are simple and need no technical knowledge. One just has to build an eye for such formations and trade with high accuracies. The above move had us trading the break. It could have been on either side. Had it dipped, a short could have been initiated. Trying not to predict the move is the key in this channel break formation.