AIICO: Shifting of direction from down to up; good news for buyers

Proshare

Monday, August 17 2015 9.55 AM / Harish Shahi, The Analyst 

A closer look on the daily chart of
AIICO reveals that earlier stock was making successive lower lows and lower highs followed by a sharp sell-off heading towards south side.   A downtrend line is also lying on the daily technical chart which is providing supply pressure. The stock is trading and moving above all major and minor EMA lines and generating totally bearish signal. Bears are falling down from N1.25 level to N0.80 levels.


After arriving at N0.80 level, bears are struggling to decline further and the way bears are unable to move on further on downside seems that the bottom out process is going on, now whole responsibility is on the bull’s shoulder. By applying the Fibonacci retracement line from N0.70 to N1.25 level, we can see that stock has retraced almost 61.8% level which is known as golden retracement level so from here we are expecting some bounce. 


There may be a lot of demand in the market and N0.80 continued to be a very strong support level
. The short term trend is down according to the daily swing chart, and momentum appears to be in favour of the upside. A sustained move above N1.00 will signal the presence of buyers and will provide more strength to bulls; this could trigger acceleration to the upside with N1.20 next target. 

  
All odds are in favor of the bulls and indicating a bullish signal. Presently, stock is trading below all major and minor EMA lines but candles are generating reversal signal. Both investors and traders are displaying the bullish tendency towards the stock for the time being.

 



To View Technical and Interactive Chart with Indicators like MACD, RSI, Stochastic, Moving Average, Bollinger, Williams %R, MFI ... Click HERE
 


What Next?
A morning star candlestick followed by a bullish marabuzo candlestick at strong key support level is providing us some reversal signal. Both RSI and CCI indicators are providing trend reversal signal from an oversold territory and generating neutral to bullish signal.

Intraday bias remains bullish on the stock as long as N0.70 level remains intact. The N1.00 level is key resistance level followed by N1.20 whereas N0.70 can be considered as key support level followed by N0.50 level.

 


Trade Idea:
Based on the charts and explanation above traders and investors can buy at N0.89 level for the target price of N1.05 and N1.20 level with the stop loss of N0.80 level.  The tentative time frame would be 10-12 days.

NB: Return on Investment based on trade idea above does not take cognizance of brokerage commission charges   

Related NEWS

AIICO declares N779.9million PAT in Q2 15 result SP N0.90k - Proshare

 


To View Technical and Interactive Chart with Indicators like MACD, RSI, Stochastic, Moving Average, Bollinger, Williams %R, MFI ... Click HERE

For further details, kindly contact analyst@proshareng.com 


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