REliance Trade Plan 20-12-2010

Reliance is balancing after a vertical up move. Breakout from balance represents next asymmetric trade opportunity.

Some Trade ideas.

1. Breakout at open - Buy if trades above 1062.20(if moves up from 1058.75 at open) or on retest of 1058.75. SL 1055 (if opens higher and comes down at open).

2. In scenario 3 (Short setup) sell with SL 3.5 points.

Volatility linked SL for today is 3.5 points at these key reference points. But on a breakout buy at 1062.2, a large SL should be used to avoid getting stopped out on retest of 1058.75 reference point.