RELIANCE — Weekly Harmonic Structure | Potential Reversal Zone

Reliance is approaching an important long-term technical area after completing a large XABCD harmonic structure on the weekly timeframe. Harmonic measurements The structure shown on the chart has the following Fibonacci relationships: AB / XA ≈ 0.482 BC / AB ≈ 1.289 CD / BC ≈ 1.663 AD / XA ≈ 0.895 The most technically interesting feature is the BC → CD extension of ~1.663, which sits very close to the commonly watched 1.618 Fibonacci extension. At the same time, D is returning toward the broader X-origin area. This creates a potential Fibonacci confluence / Potential Reversal Zone (PRZ) around approximately ₹1,120–₹1,180. Market structure From point C near ₹1,600, the weekly structure has remained bearish. The decline has produced a sequence of lower highs and lower lows, meaning the existing trend should still be considered bearish until price demonstrates an actual structural reversal. Point D therefore represents a potential reversal area—not confirmation of a bottom. That distinction is important. Harmonic completion identifies an area where the probability of a reaction may increase; it does not mean price must reverse immediately. Why the D-zone matters Several technical factors are converging around the present region: 1. Harmonic completion: The projected CD leg is reaching its expected Fibonacci-extension territory. 2. Major historical price zone: D is approaching the broader region around point X, where a significant bullish expansion previously originated. 3. Psychological support: ₹1,200 and the ₹1,100–₹1,150 region are major round-number/reference areas visible on the weekly structure. 4. Extended bearish leg: The move from approximately ₹1,600 toward ₹1,160 represents a substantial contraction. A reaction from this area would therefore be technically meaningful, particularly if accompanied by improving momentum and volume. What would confirm the reversal? I would not treat the touch of D alone as a long signal. A stronger bullish thesis would require evidence such as weekly rejection from the PRZ, bullish engulfing/pin-bar formation, increasing buying volume, momentum divergence, formation of a higher low, and eventually a break above the most recent weekly lower high. The sequence to watch is: PRZ reaction → bullish displacement → higher low → break of lower-high structure → bullish continuation Until that sequence begins developing, the chart remains a bearish trend testing a potential reversal zone. Important price zones ₹1,120–₹1,180: Major PRZ / long-term support area. This is the most important zone on the chart. ₹1,200–₹1,240: First recovery area. Reclaiming this region would indicate that buyers are responding at D. ₹1,280–₹1,320: First meaningful supply/structure zone. Price spent considerable time consolidating here during the decline. ₹1,360–₹1,400: Stronger resistance and potential structural confirmation area. ₹1,440–₹1,480: Major weekly resistance. Reclaiming this area would materially improve the larger bullish structure. ₹1,520–₹1,600: Upper harmonic structure / C-zone. This should be viewed as a long-term objective only if a genuine weekly trend reversal develops—not as an immediate target. Bullish vs bearish scenario Bullish scenario: If the ₹1,120–₹1,180 PRZ holds and price produces a confirmed weekly reversal, the first objective would be recovery toward ₹1,240, followed by ₹1,280–₹1,320. A sustained structural breakout could subsequently expose ₹1,360–₹1,400, then ₹1,440+. Bearish scenario: A decisive weekly breakdown below the X/D support region would weaken or invalidate the harmonic reversal thesis. In that situation, the structure should be reassessed rather than assuming the pattern will eventually work. TradingView post caption > RELIANCE | Weekly Harmonic Completion at Major PRZ Reliance is approaching an interesting long-term decision zone after completing a large XABCD harmonic structure. Fibonacci relationships on the chart: AB/XA ≈ 0.482 | BC/AB ≈ 1.289 | CD/BC ≈ 1.663 | AD/XA ≈ 0.895. The CD extension is particularly interesting because 1.663 is close to the key 1.618 Fibonacci extension, while point D is simultaneously returning toward the historical X-origin/support region. This creates a potential PRZ around ₹1,120–₹1,180. However, the weekly market structure remains bearish with lower highs and lower lows. Therefore, harmonic completion should not be confused with reversal confirmation. I am watching for a strong weekly rejection, bullish displacement, formation of a higher low and ultimately a break of the previous lower-high structure. If the PRZ holds, the recovery zones to monitor are ₹1,240 → ₹1,280–1,320 → ₹1,360–1,400 → ₹1,440–1,480. The ₹1,520–₹1,600 region becomes relevant only if a larger weekly bullish reversal develops. A decisive breakdown below the X/D support region would weaken the harmonic reversal setup. The key idea: D is a Potential Reversal Zone, not an automatic buy signal. Price action must confirm the reversal. Educational analysis only. Manage risk according to your own trading plan.