Reliance Industries Limited (RELIANCE) Stock - Complete Technical Analysis - Dec 12, 2024

Reliance Industries Stock Analysis Key Technical Insights & Trading Strategies December 2024

Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Investing in stocks involves risks, and it's essential to conduct thorough research or consult with a financial advisor before making investment decisions. Reliance Industries Limited (RELIANCE) has been showing some signs of weakness recently, with the stock currently trading around 1,263, 21.5% off its 52-week high of 1,608.8. The stock is in neutral territory based on the RSI, which is at 40.11. Despite the neutral RSI, the MACD suggests that bearish momentum is still present, indicating further downside potential. The stock is trading below important moving averages, including the 50-day and 200-day simple moving averages, signaling a bearish short-term trend.

The Average Directional Index (ADX) at 25.08 suggests a moderate trend, with the bearish momentum outweighing bullish signals. The last few days have seen price drops, with the stock showing a consistent pattern of opening higher but closing lower, which reinforces the bearish outlook. Additionally, with the stock's price below key exponential moving averages, particularly the 50-day EMA, it faces resistance at levels near 1,350.

Support is seen around the 1,225-1,230 zone, with the 52-week low of 1,203.15 being a crucial level to monitor. If the price breaks this support, further declines could be expected. On the upside, the key resistance to watch for is at 1,350, and if the stock manages to break through this level, it could signal a reversal to the upside. With the Average True Range (ATR) showing high volatility, traders should expect larger price swings and adjust their strategies accordingly.

Given the current technical indicators, traders should consider short-term strategies, like selling near resistance levels, while waiting for a confirmation of trend reversal before entering long positions.