Reliance Communications Price Action History is Repeating

Whoever have said that Markets are efficient havent lived a single day as a Trader. People who think technical analysis doesnt work must look at Reliance communications daily chart now. Price action is repeating a similar type of behavior we saw duringDec 2017. Recent jump in share prices might have surprised many market participants but it wouldnt have made any difference forPrice action Traders. Whether it turns out to be the same or not is something that we should watch in coming days.

Repeating Price action Behaviour

During the Period of Nov Dec 2017, Market tested the Support zone at10.00and witnessed a surge in Share prices. Buying pressure increased sharply after testing the support zone. Stock value jumped from 10.00 per share to 40 per share, within a month. In Correlation to thatNet volumealso increased.

But after touching 40.00, Price action formed structural resistance zone at40.00. Reliance communication share prices started to tumble from the high and later turned into a Downtrend. Based on Market structure, we can consider it as a Short term trend. The downtrend persisted tillStructural support zone. After touching the structural support zone at 10.00, Share prices bounced back.

Right now, something interesting is taking place at structural support zone. Price action is repeating a similar type of Market behaviour we saw during Dec 2017. Whats more Interesting is that, even volume has started to build up just like in the previous rally. What would happen this time? Will the prices shoot upside? Or will it turn into anotherfalse Indication?Just observe the Developing price action in coming days. In either case, this scenario proves thatMarket prices do have a memory!

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