{"id":281830,"date":"2013-01-24T10:29:40","date_gmt":"2013-01-24T04:59:40","guid":{"rendered":"http:\/\/stockviz.biz\/index.php\/?p=281830"},"modified":"2013-01-24T10:37:54","modified_gmt":"2013-01-24T05:07:54","slug":"analysis-rcom","status":"publish","type":"post","link":"https:\/\/stockviz.biz\/index.php\/2013\/01\/24\/analysis-rcom\/","title":{"rendered":"Analysis: RCOM"},"content":{"rendered":"

Today\u2019s pick is RCOM [stockquote]RCOM[\/stockquote]. The stock started the year with a very quick up-move which experienced resistance around Rs. 110 levels in Feburary. After a head-and-shoulder top formation, the stock started its down-ward movement to see a bottom of Rs. 50 by September. Since then, the stock has been on an up-move. In the last three months, the stock has moved +54%<\/strong><\/b> vs. +7% of the Nifty\u2019s. <\/p>\n

\"RCOM<\/a> <\/p>\n

Oscillators RSI<\/a> and CMO<\/a> are hovering close to the over-bought territory and are suggesting a short-term bearish<\/b> price action. The stock is close to the upper Bollinger band<\/a>, which is suggesting a bearish<\/b> move for the stock as well. <\/p>\n

The MACD<\/a> line and signal line are moving very close to each other unable to suggest any short-term direction. Long-term and short-term GMMA<\/a> lines are well dispersed and are pointing towards a bullish<\/b> long-term direction for the scrip. <\/p>\n

\"RCOM<\/a> <\/p>\n

RCOM\u2019s average correlation<\/a> with the Nifty<\/a> is 0.62 is positive <\/strong>and strong<\/strong>. The scrip will be closely replicating the movement of Nifty. [stockquote]NIFTYBEES[\/stockquote] <\/p>\n

\"RCOM<\/a> <\/p>\n

RCOM has a historical volatility<\/a> in the range of 0.4 to 1.0. The scrip\u2019s volatility is currently in the middle of the range. <\/p>\n

Given these technicals, we suggest a short-term Sell <\/strong>owing to the little divergence of price with momentum oscillator. <\/strong>A longer term Buy<\/b> is suggested attributing to the well spread out GMMA lines and current up-trend. However, we suggest having trailing stop-losses<\/a> in place, in case trend-reversal were to take place. <\/p>\n

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