June 24, 2020

AllStarCharts: RELIANCE has 35% more upside

While I am seeing limited upsides in RELIANCE due to a huge expanding triangle, Tom Bruni of AllStarCharts sees another 35% upside.

Suggesting that Reliance Industries could rise another 35% from current levels may seem like a bold call, especially since it has doubled off the March lows. But when you consider our thesis that Equities are in the midst of a new Bull Market then it makes sense that the largest stock in the market would be leading the charge.

And with relative strength hitting new highs and our risk well-defined on an absolute basis, even if we’re wrong the reward/risk is so skewed in our favor that any losses are small enough relative to the potential reward to warrant putting on the trade.

The bottom line is, if Reliance Industries is above 1,600 we want to be long with a 6-month target up near 2,340.

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