RACL formed a triple top today on the daily charts although with moderate volumes. If the triple top pattern plays out, the stock could go down to 340 levels. Whether or not it does that would clearly depend on the impact on its revenues and margins due to the energy crisis in Europe.
I had reduced my position by half after last Qtr to mitigate Europe related risks but I plan to continue to hold the remaining quantity and add on significant dips. From a 3 year POV, significant dips from here can provide great buying opportunities in my opinion as I don’t think RACL’s or its customers’ fundamental business capabilities will be impacted in any significant way over a 3 year period. If RACL can navigate through its tight balance sheet position, the stock should do well once this turmoil is over.
PS : None of the above is investment advice, I am very new to technical analysis and can be completely off the mark.
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