Technical Analysis on Request: RCom

After a short correction, making a high of 160. The stock had shown negative divergence and started correcting. Thus forming a Flag pattern. In another perspective we can even see  Descending Triangle. It is clear that the stock has given bullish breakout in both Flag and Descending Triangle.

The Technical Indicator MACD say a different story: It is about to give a bearish cross-over. RSI had touched overbought level and now at a neutral zone.

The price recently gave a breakout in 200 day moving average and was not able to sustain the trend and started correcting.
 
Strategy: As MACD is a Moving Average based indicator and it is worth trading the pattern. currently the support is at 110 and resistance is at 160. Let the correction happen if MACD give a bearish crossover we can wait till 110 and if the stock don't show any reversal and continue to be bearish it is not a worth buy. If it show a reversal and give a conformation by crossing 200 DMA. It is on a bull run.