Reliance Elliottwave Count CMP 929
In what surely must rank as one of the most frustrating stocks for buy and hold investors from 2008 to 2017, reliance went sideways in a bullish triangle for 7+ years before the expected thrust. Even the thrust started innocuously enough with a leading diagonal as wave 1 (which made the sideways movement seem more like 9 years instead of 7), followed by a sharp wave 3 to the upside. (Prices are adjusted for bonuses and splits).
After completion of the triangle at 398 (wave E of 4) in March 2015, the real move began in the 3rd wave at 466 in Nov 2016 (price of 932 before the recent 1:1 bonus).
It is our view that wave 3 (of 5) completed at 872.1 in Sept 2017, and price is currently in a 4th wave triangle which should play out for the next 2-3 months by testing the 872 level a couple times before this triangle also ends by thrusting upwards in what would then be a fifth of a fifth wave on larger degree to the 1000 – 1100 level.
The recent high at 958.20 appears to be a B wave of the minor 4th wave triangle, and not the orthodox top of wave 3 which is 872.10 in our view. See below.