SRF Ltd: BUY
- After showing sideways consolidation pattern over the last few weeks, the stock price (SRF Ltd) has shifted into upmove during this week.
- Presently, the stock price is making attempt to stage upside breakout of the triangle type pattern (brown converging dashed line) around Rs.1697 levels.
- We observe consistent higher high formations in the stock price over the last few weeks, which is suggesting a buy on dips opportunity.
- Weekly positive swing indicator like +DMI is dominating and the weekly ADX is gradually turning up from near 20 levels. This pattern is suggesting that the upside trend strength is gradually increasing.
- With overall positive set up, one may look to create long positions in SRF Ltd, as per levels above.
Reliance Communications Ltd (RCOM): SELL
- Attached weekly timeframe chart of RCOM is indicating a bearish trend, as the stock price has been moving down according to lower tops and bottoms.
- The attempt to move up in the last couple of months have ben failed and the stock price has now shifted into fresh decline during this week.
- The RCOM is facing stiff resistance of 40w EMA and also trend line around Rs.40-41 levels, which is unlikely to be broken on upside for near term.
- Weekly RSI has been in a bearish high low range (60-25 levels) and its recent attempt to move up has been fizzled out at 50 levels. This is indicating weak upside strength.
- Negative chart and momentum pattern is suggesting a short trade setup in RCOM. One may look to create short position as per levels mentioned above.
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