This is getting to be Fun - Reliance Infra

Now after My RCap post I am getting asked if it has bottomed and it is a buy now. Amazing how the ideal of buying is still so hot. And if it is down it must be a cookie.

But these are massive multi year patterns. Hard to call an early bottom. Not till you can count till point Z. I think we are in waved Y. For an early call you need to at least see an impulsive rally. And based on the Value wave model identify value. I hope you understand how to check on the value of a stock by reading a balance sheet, discounting its debts and cash flow. Or replacement value. If not Take a Class on it.

So I said to my self That Reliance Infra was forgoton. Here too I have not written in a while. Why? Because wave B took so long to form that you had to wait for wave C to start and when it did all of a sudden in days most of the damage is done. This is where time based analysis fails. How could I know how long I would remain in wave B. And if your patience runs out and you buy it thinking that it has multiple bottoms then what? The pattern was however pointing to a break of the neckline as seen in the May 2016 post below. Stay tuned for more ''Truth About the Markets"

Now don't ask me if 96 is going to be a bottom, I do not know that.

Making lower tops and bottoms for a while it broke both the 20/40 day averages which are now resistance at 526 and 547. The big picture chart shows the start of wave 3 of 3 down. Wave 3 can test the lower end of the triangular range at 270. The question is whether that range will eventually break. Something we will explore as it develops but let us at least look for that much to play out. If the larger decline is wave C down and extends over several months it can go to as far as 96 if prices break and sustain below 270.