Analysis – Future of Reliance Natural Resources (RNRL) Stock Price
The stock started the week on a positive note but later encountered significant immediate resistance at Rs 75. On Tuesday it fell 7 per cent albeit with good volume. After taking a pause around Rs 68 for a couple of sessions, the stock formed a downward flag pattern which is a continuation pattern. Reliance Natural Resources stock crashed almost 27 per cent on Friday breaking out of the flag pattern, following the announcement of Supreme Court verdict in the RIL-RNRL case. Volume traded was extraordinary on that session. The stock achieved its flag pattern price target of Rs 60 and decisively penetrated its key medium-term support around Rs 60.
From its June 2009 high of Rs 112, the stock has been on an intermediate-term downtrend, shaping lower peaks and lower troughs. Overall, the stock dropped 26 per cent last week and is trading well below its 21- and 50-day moving averages. In the medium-term, the stock can decline further to a significant support level of Rs 40. A strong weekly close below this level will drag RNRL lower to next support level of Rs 20. Immediate resistances are at Rs 56, Rs 60 and Rs 65.
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i have rnrl sahres at 65 should i hold it