RS Should I Buy
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Buy RS now for a near-term technical continuation move. The trend structure is bullish (SMA_5 > SMA_20 > SMA_200) and price is sitting right on the pivot/support area (~327.6), which is a favorable “buy-the-dip” location for an impatient buyer. Upside levels to watch are 334.4 (R1) and 338.6 (R2). The main offsets are soft Q3 profitability (margin/income down YoY) and a mixed-to-positive but not universally bullish Street view with some price targets below today’s price.
Trend is bullish: moving averages are stacked positively (SMA_5 > SMA_20 > SMA_200), supporting an uptrend. Momentum is constructive but not euphoric: RSI(6)=62.1 (neutral-to-slightly warm, not overbought). MACD histogram is positive (0.182) but contracting, implying upside momentum is still present yet slowing—often consistent with consolidation before the next push. Key levels: Pivot 327.634 is immediate support (price ~328.16 is very close). If support holds, the next upside checkpoints are R1 334.428 then R2 338.625. If pivot fails, S1 320.839 is the next major downside level. Pattern-based stats suggest mild weakness next day/week (-0.98% / -1.68%) but a favorable 1-month bias (+7.64%), aligning with a dip-buy entry near support.
Bullish trend structure with price sitting near pivot support (~327.6), offering a clean technical entry for a fast move back to 334–
Options positioning skew is constructive (sub-1 put/call on OI and volume) alongside unusually high activity, consistent with bullish attention.
Analysts are mostly constructive on Reliance specifically: KeyBanc maintained Overweight (PT $
and JPMorgan maintained Overweight (PT $340).
Next earnings catalyst: QDEC 2025 earnings on 2026-02-19 after hours (street EPS est. 2.
can re-rate the stock if pricing/volumes and margins stabilize.
Latest reported quarter (2025/Q
showed profitability pressure: net income and gross margin declined YoY despite revenue growth—this can cap near-term multiple expansion.
Mixed Wall Street target dispersion: BofA is Neutral with PT $305 (below current), and KeyBanc’s PT $325 is slightly below the current price (~328), implying some analysts see limited upside at this level.
MACD positive but contracting + short-term pattern stats point to slight near-term drift down (next day/week), so the trade may require tolerating small initial chop.
Latest quarter: 2025/Q3. Revenue grew to $3.651B (+6.75% YoY), showing demand/resilience. However, profitability softened: net income $189.5M (-4.87% YoY), EPS 3.59 (-0.55% YoY), and gross margin 26.34% (-4.01% YoY). In short: top-line improving, but margins are compressing—RS needs stabilization/improvement in pricing spread/costs to re-accelerate earnings growth.
Recent trend: generally supportive but mixed. On Reliance (RS), KeyBanc reiterated Overweight and nudged PT up to $325 (from $320) on 2026 outlook work; JPMorgan kept Overweight but trimmed PT to $340 (from $345); BofA stayed Neutral and cut PT to $305 (from $330), citing a challenging macro/China demand concerns (partly offset by potential US/Europe rebound). Wall Street pros: multiple Overweight ratings and expectation for improved sector profitability into 2026. Cons: at least one meaningful Neutral view with a well-below-market PT, and some targets sit near/under the current price, suggesting upside may be more incremental unless margins re-expand. No recent insider trend (neutral) and no congress trading data in the last 90 days; no notable politician/influential figure transactions were provided.
