UPDATED CHART
WEEKLY CHART
DAILY CHART
- Reliance communication has made a break out.
- But the volume in daily chart is not supporting. The stock may move ahead despite low volume.
- And look at the weekly chart it is just above its 50 week moving average. Sustaining above this is vital for the stocks next move.
______________________________________________________________________
RELIANCE COMMUNICATION WEEKLY CHART
Fundamental View
Reliance Communication Ltd and its subsidiary, Reliance Infratel Ltd and GTL Infrastructure Ltd have approved in principle Rs 50000 crore deal. This deal would create the world's largest independednt telecom infrastructure company.Reliance communication will benefit from cash infution which can be used for reducing its debt. And 2 million reliance communication share holders will receive listed shares of GTL Infra.
Technical View.
Reliance communication is on the verge of a break out at 192 one close above 192 will push the stock towards its next target of 230.
Break out above 192 and close should happen with good volume increase.Related Article.
GTL INFRA LTD BREAKS OUT
dear san,
ReplyDeletethanks 4 your views. But RCOM has already closed above 192. Infact NSE cash closing shows 192.3.
So do we construe that it has already broken out.If so what should be the ideal stop loss.
San.. there will be a reversal from here.. no more upmove
ReplyDeleteStop loss for any breakouts should be kept just below the point of break out. Because any break out can fail.
ReplyDeleteSo we should go for large profits with small losses. So keep a stop loss that's comfortable for you.
San - Notice the stock fell..
ReplyDeleteTomm is the last day for Nifty to trade on it's high. Reversal for a downmove begins tomorrow - lasting till Aug 9th & 28th