http://www.thehindubusinessline.com/iw/2010/06/06/stories/2010060650050600.htm
Reliance Communications was pulped in the market crash of 2008 and the stock reeled lower from the peak of Rs 845 to Rs 131 by March 2009. The recovery in 2009 could retrace only one-third of this fall emphasizing that the long-term outlook remained weak. The stock reversed lower in the last quarter of 2009 and is currently testing its long-term support once again. A double-bottom was formed when the stock reversed from Rs 131 in May this year. But the recovery has to gain strength before we can say that the worst is over. Immediate targets for the current up move are Rs 180 and Rs 200. Investors with a short- to medium-term perspective can take some money off the table if the stock fails to close above Rs 200. Fresh purchases with long-term perspective are recommended only on a close above Rs 220. Investors with a greater penchant for risk can buy at current levels with stop at Rs 120. Key long-term resistance band for the stock is between Rs 360 and Rs 400. We do not recommend averaging since it means offsetting profit in one trade against the loss in another. The loss can exacerbate if the stock continues moving lower after averaging. Cutting the loss and exiting the position is always the better option in such situations. ** ** ** ** ** ** ** ** ** -- You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en.
