ACCESS: Inverted head and shoulder pattern are forming

Proshare

Friday, November 20, 2015 10.00 AM / Harish Shahi, The Analyst 

A closer look on the daily chart of
ACCESS reveals that every swing is making successive lower lows and lower highs and marking the whole trend downwards. Stock is consistently moving down from N10.00 to N4.00. However, some corrections can’t be ruled out.

Overall, bears are dominating the bulls consistently, when stock arrived at extreme overbought territory of N4.00 level, we saw some panic reaction as the bulls bounced back towards upside.

Presently, stock has arrived at N5.00 level and from a technical perspective we observed that an inverted head and shoulder pattern are forming on the daily technical chart which is providing bullish signal for the time being.

A sustained move above N5.50 level will open the way towards N7.00 level which will signal further presence of buyers and will provide more strength to the bulls; this could trigger acceleration to the upside with N9.20 as next target.

The way bulls are reacting seems that they are approaching the N7.00 level in short term. All odds are in favor of the bulls and indicating a bullish signal.

Presently, stock is trading between all major and minor EMA lines and candles are generating bullish signal. Both investors and traders are displaying bullish tendency towards the stock for the time being.



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What Next?
Inverted hammer candlestick followed by bullish engulfing 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 a negative territory.

Intraday bias remains bearish on the stock as long as N4.00 level remains intact. The N6.00 level is key resistance level followed by N7.00 while N4.00 can be considered as key support level followed by N3.50 level.

Trade Idea:
Based on the charts and explanation above, traders and investors can buy at N4.75 for the target price of N6.10 and N7.50 level with the stop loss of N4.00 .The tentative time frame would be 8-10 days.

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

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For further details, kindly contact 
analyst@proshareng.com

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