ABCTRANS: Buying is on the cards as rounding bottom pattern is in process.

Proshare

Thursday, September 3 2015, 08.30 AM / Harish Shahi, The Analyst 


A closer look on the daily chart of ABCTRANS reveals that earlier stock was falling down from N1.08 to N0.51 level but after arriving at that level bears could not sustain it and the bulls’ spring back to N0.68 level. Well from technical prospective, we can see two consecutive rounding bottom patterns are in the process of formation and generating bullish signal.


Earlier stock was falling down and making successive lower highs and lower lows and heading towards south side. After arriving at the bottom of the stock bears were unable to move further down as we can see a balanced demand and supply where only bulls are controlling the game for the time being.


The short term trend is down according to daily swing chart, and momentum appears to be in favour of an upside. A sustained move above N0.70 will signal further presence of buyers and will provide more strength to the bulls; this could trigger acceleration to the upside with N1.00 as next target.


The way bulls are reacting seems that they are approaching the N1.10 level in short term. A valid breakout of N0.70 will open the way towards the N0.90 and N1.10 level which is key resistance level for the time being.


All odds are in favor of the bulls and indicating a bullish signal. Presently, stock is trading above all major and minor EMA lines and candles are generating trend reversal signal. Both investors and traders are displaying 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 bullish engulfing candlestick followed by a bullish marabuzo candlestick is generating bullish signal. A bullish crossover on MACD indicator is also favoring the bulls. Both RSI and CCI indicators are providing bullish signal from positive territory.

Intraday bias remains bullish on the stock as long as N0.50 level remains intact. The N0.65 level is key resistance level followed by N0.85 while N0.50 can be considered as key support level followed by N0.40 level.

 


Trade Idea:
Based on the charts and explanation above, traders and investors can buy at N0.53 level for the target price of N0.70 and N0.90 level with the stop loss of 0.40.The tentative time frame would be 5-6 days.

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


 

Related NEWS

ABCTRANS declares N40.6 million PAT in Q2 15 result SP N0.51k

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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