Saturday, January 04, 2014

Reliance communication Technical chart

Hi friends,
                   Lets look at the chart structure of RCOM,This stock had a very sharp run in year 2013.
Ran from 50 to 160+ with in six month,And presently in time comsuming complex correction,
Looking at the correction from 160+ onwards closely,We can see a tripple zigzag wxyxz .
Which is shown clearly in the following chart.
This correction is in its 4th month already with last leg of z on,The stock has covered very less price
160 to 130 whereas it took 4 month so its a lengthy correction with smal price volatility compared to
its 6 months run 50 to 150.
Right now we can have a small short trade here in rises with strict stoploss at 140+ for a target 120.
Since this is last leg of triple zigzag ,stoploss has to be strict,Do track this stock look for a handsome
jump once triple zigzag correction ends.



Dinesh C Nagpal said...

I was expecting 100-110 in it before it resumes its upward trend, thanks for the wave count. You shoudl also check another telecom stock which was equally battered in long term but saw a surge in 2013 - Tata Comm.

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