AFRIPRUD: Triple bottom pattern has been formed

Proshare

Friday, December 11, 2015 09.20 AM / Harish Shahi, The Analyst 

A closer look on the daily chart of AFRIPRUD reveals that earlier stock was falling down consistently due to supply pressure from downtrend line and was making successive lower highs and lower lows. It seems the bears were beating the bulls like black and blue and dominating them at every nook and corner.

Stock was constantly falling down from N3.60 to N2.22 level but after arriving at an oversold territory, the bears could not manage their self and some panic reaction was seen in the bull’s camp as rounding top pattern has been completed. 


Stock has arrived at N2.33 level as we can see on the daily chart. It bounced from this level 2 times earlier also so the chances of buying from this level are very high. The way the bulls are reacting seems that they are approaching N2.60 and 3.00 level in short term.


The recent counter-attack has created hope for the bulls and the sentiment has changed from bearish to bullish. Well this is an early buy signal, we will get further bullish confirmation once stock trades and settles above N2.60 level and a valid breakout of N2.60 level will open the way towards N3.20 level.

Presently, stock is trading below all major and minor EMA lines and if it sustains above N2.50 level then it will provide further bullish signal and will also provide more strength to the bulls; this could trigger acceleration to the upside with N3.00 as next target.

All odds are in favor of the bulls and indicating a bullish signal. Both investors and traders are displaying the bullish tendency towards the stock for the time.



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 piercing pattern is generating bullish signal for the time being. 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 N2.00 level remains intact. The N2.60 level is key resistance level followed by N3.00 whereas N2.00 can be considered as key support level followed by N1.50 level.

Trade Idea:
Based on the charts and explanation above, traders can buy this stock at N2.33 level for the target price of N2.60 and N3.00 with tight stop loss of N2.00 level. The tentative time frame would be 6-8 days.

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

Related NEWS

AFRIPRUD Declares N1.08 billion PAT in Q3 15 Result SP N2.66k - 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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