AIICO: Ascending triangle has been formed


Thursday, November 19, 2015 09.30 AM / Harish Shahi, The Analyst 

A closer look on the daily chart of AIICO reveals that every swing is making successive lower lows and lower highs and marking the whole trend as downtrend. Stock is consistently moving down from N1.24 to N0.78 level. However, some corrections can’t be ruled out.

Overall, bears are dominating the bulls consistently; when stock arrived at extreme overbought territory of N0.78 level as we have seen panic reaction or we can say that bulls denied moving down further.

Presently stock has arrived above the moving average N0.95 level and from technical perspective we observed an uptrend on the daily technical chart which is providing bullish signal for the time being.

A sustained move above N1.00 level will open the way towards N1.20 level and will signal further presence of buyers and will also provide more strength to the bulls; this could trigger acceleration to the upside with N1.20 as next target.

The way bulls are reacting it seems that they are approaching the N1.20 level in short term. Well odds are in favor of bulls and indicating the bullish signal.

Presently, stock is trading above 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?
A morning star candlestick followed by bullish marabuzo candlestick which is generating bullish signal. A bullish crossover on MACD indicator is also favoring the bears. Both RSI and CCI indicators are providing bullish signal from a negative territory.

Intraday bias remains bearish on the stock as long as N0.80 level remains intact. The N1.05 level is key resistance level followed by N1.20 while N0.80 can be considered as key support level followed by N0.60 level.

Trade Idea:

Based on the charts and explanation above, traders and investors can buy at N0.92 for the target price of N1.10 and N1.50 level with the stop loss of N0.80 .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

Related NEWS
AIICO records 0.81 decline in PAT sheds 7.90 in Revenue in Q3 15Proshare

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

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