AIRSERVICE: Stock has bottomed out; just enjoy the rally

Proshare

Wednesday, December 30, 2015 07.20 AM / Harish Shahi, The Analyst 

A closer look on the daily chart of
AIRSERVICE reveals that stock was heading towards south side and was falling down due to pressure from downtrend line and making successive lower highs and lower lows. Stock was constantly moving down from N6.00 to N1.58 level but after arriving at that level, we saw panic counter attack and it bounced back to N2.50 level.

 

Stock moved up above the moving averages and sustained above that level which creates hope for the bulls as bears could not sustain at that level and bulls took the charge. Presently, the bulls are dominating the bears and heading towards north side. The bulls came back to re-test the moving averages or in other words some partake in profit booking.

 

From technical perspective, we saw that the downtrend line has breached out on the daily technical chart which is providing trend reversal and bullish signal. The stock has arrived at N2.00 level which is a positive territory where bears were expected to lose control from the stock and bulls were supposed to take charge and they did the same.

 

The way the bulls are reacting seems that they are approaching N3.00 and N4.00 level in short term. Well, this is an early buy signal; we will get further bullish confirmation above N2.50 level.

 

Presently, stock is trading above all major and minor EMA lines and providing bullish signal. Above N2.50 level, it will provide further presence of the bulls and will provide more strength to the bulls; this could trigger acceleration to the upside with N4.00 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 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 marabuzo candlestick followed by bullish engulfing candlestick 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 negative territory.

 

Intraday bias remains bullish on the stock as long as N1.50 level remains intact. The N2.50 level is key resistance level followed by N3.00 whereas N1.50 can be considered as key support level followed by N1.00 level.

 

Trade Idea:

Based on the charts and explanation above, traders can buy this stock at N2.00 level for the target price of N2.50 and N3.00 with tight stop loss of N1.50 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
 

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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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