Reliance Communications has been one of the better performing stocks this year. After a brief consolidation, the stock appears to be ready for the next leg of the uptrend. As highlighted in the Daily chart featured below, the stock has taken support at the red medianline and has been in a recovery mode in the past few trading sessions.
The stock enjoys a strong support at the Rs.110-113 range. The stop-loss for long trades may therefore be placed below Rs.110. Investors may adopt a SIP kind of approach to buy the stock as the stop loss is too rich for a long position considered at the current market price of Rs.128.
The stop loss may be moved to break-even when the price moves 5% in your favor. We expect the stock to rally to the immediate target at Rs.155. Expect an update with higher targets once the price hits the initial target of Rs.155.
(The view mentioned here is based on Technical Analysis of historical stock price action. Please read the Disclaimer)