Comments
Investors with a short-term horizon can sell the stock of Reliance Communications at current levels. On Thursday, the stock fell 3 per cent with strong volumes, breaking through the descending triangle pattern’s horizontal line at Rs 128. Since its September 2013 peak of Rs 164, the stock has been on a medium-term downtrend.
The short-term trend is also down. The stock is trading well below its 21- and 50-day moving averages. The relative strength index on the daily chart has entered the bearish zone from the neutral region.
The daily moving average convergence divergence indicator has signalled a sell and is featuring in the negative territory, implying downward momentum. Both the daily as well as weekly price rate of change indicators are hovering in the negative terrain. With the recent downward breakthrough, the stock appears to have resumed its medium-term downtrend. It can extend the decline and reach the price target of Rs 119 and then Rs 116 in the upcoming trading sessions. Sell the stock while maintaining a stop-loss at Rs 127.
( Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.