Reliance Industries (Daily Chart)

✅ 1. Descending Trendline The blue trendline has been respected multiple times: January peak May rejection Current approach The more times a trendline is tested, the more significant the eventual breakout tends to be. ✅ 2. Price Compression Over the last few weeks, the candles have become smaller and more tightly packed just below the trendline. This indicates: Selling pressure is diminishing. Buyers are gradually absorbing supply. Energy is building for a breakout. This type of compression often precedes a strong move. ✅ 3. Higher Lows Recent swing lows have progressed approximately as: ₹1,260 ₹1,275 ₹1,290 ₹1,305 This is an early sign that buyers are gaining control even before resistance has been broken. The Key Level Current price: ₹1,327 The trendline lies around: ₹1,330–1,335 This is the make-or-break zone. Bullish Scenario If Reliance closes decisively above ₹1,335–1,340 with above-average volume, it would confirm a breakout from the descending trendline. Potential upside targets: ₹1,380–1,400 (first resistance) ₹1,450 (previous swing high) ₹1,500–1,520 if momentum continues That represents roughly 10–15% upside from the breakout level. Bearish Scenario If price fails to break the trendline and forms bearish rejection candles (long upper wicks or bearish engulfing), it could revisit: ₹1,300 ₹1,280 ₹1,250 Until the trendline is broken, the primary trend is technically still down.