Reliance Natural Resources Limited (NSE: RNRL)

Mid-term Market Sentiment - Bullish

As per the technical chart pattern this stock looks like to take a new bull trend in mid-term and long-term time period. In 2 years time, RNRL went from Rs 20 to Rs 248 and hit the high at Rs 248 in Jan 2008. Since January 08 this stock has retraced back and hit recent low at Rs. 53 in July 08. After hitting low, now RNRL is trading near Rs 103. This stock looks bullish in mid-term time period. The reasons are:

• Price is trading above both EMA (20) and EMA (100) and closed above EMA (100)
• Price has pierced upper Bollinger band and trading above mid Bollinger band
• RSI (14) is 65 which indicates a good strong trend
• Up volume is much higher than down volume from past 5 weeks

If you think this stock won’t come down any further, then this could be a good time to buy RNRL at Rs 100 with stop loss just below Rs 85 for target one at Rs 126 and target two at Rs 148