In our view, the Reliance Communications (RComm) has completed its downfall and has created a medium term support around the levels of Rs150. From the current level, the stock can only move towards one direction, i.e. upwards.
The daily RSI has also given a positive divergence, indicating that price would start moving up.
The stock was trading in a downward channel since second week of January 2008 with resistance at the breakout point of Rs168.
After creating a base around Rs150, the stock has moved up steadily and on Wednesday it advanced past the top channel line, resulting into a channel breakout.
Based on the above, we recommend traders to BUY the stock at current levels and on declines up to the levels of Rs168 with the support of Rs164 for an initial target of Rs190.