Buy Reliance and average as per Ganns Angels
By constructing the Gann Fann line on Reliance Chart we see that Reliance Industries is respecting Gann Angles on daily charts.
In Daily time frame according to Ganns theory all of Gann's techniques require that equal time and price intervals should be used on the charts, so that a rise/run of 1 x 1 will always equal a 45 degree angle which shows a bullish movement .The 1 x 1 trendline signifies a bull market if prices are above the trendline.Gann fans are a form of technical analysis based on the idea that the market is geometric and cyclical in nature. A Gann fan consists of a series of lines called Gann angles. These angles are superimposed over a price chart to show potential support and resistance levels.
A Gann angle requires a straight line on a price chart, given a fixed relationship between time and price. According to Gann, the most important angle was a line representing one unit of price for one unit of time, now widely regarded as the 1x1 or the 45° angle. In this instance, the value of a commodity or stock which confirms to a 1x1 angle is said to increase by one point per day. The collection of Gann angles follows as 2x1 (moving up two points per day), 3x1, 4x1, 8x1, and 16x1. These movements are not limited to up moves; the angles for decreases in the price of a security apply just the same.
Gann Angles are drawn between a significant bottom and top (or vice versa) at various angles. Deemed the most important by Gann, the 1 x 1 trendline signifies a bull market if prices are above the trendline or a bear market if below. Gann felt that a 1 x 1 trendline provides major support during an up-trend and when the trendline is broken, it signifies a major reversal in the trend. Gann identified nine significant angles, with the 1 x 1 being the most important:
1 x 8 | - | 82.5 degrees |
1 x 4 | - | 75 degrees |
1 x 3 | - | 71.25 degrees |
1 x 2 | - | 63.75 degrees |
1 x 1 | - | 45 degrees |
2 x 1 | - | 26.25 degrees |
3 x 1 | - | 18.75 degrees |
4 x 1 | - | 15 degrees |
8 x 1 | - | 7.5 degrees |
As per Ganna Angles we see Reliance first support at Rs. 1778 and nest support at 1597 so if you are looking for fresh entry then enter near 1778 and if even it goes done then add more at 1597, in long run we see it upside above 2000 as first target and 2200 very soon.
By: Roopali Vaish
Note: Above content is only for promotional and educational purpose, please consult your investment advisor before making any position.