ASHAKACEM: Bullish wave is appearing as stock is retracing


Tuesday, December 29, 2015 09.30 AM / Harish Shahi, The Analyst 

A closer look on the daily chart of ASHAKACEM reveals that stock was heading towards south side and was falling down by taking pressure from the downtrend line and making successive lower highs and lower lows.


Stock was constantly moving down from N35.00 to N7.39 level but after arriving at that level we saw some retracement and it bounced from 61.8% Fibonacci retracement line.


We have seen some reversal signal in terms of counter attack. As bears could not sustain at that level and the bulls took charge at an initial level. Presently, bulls are dominating the bears and heading towards north side.


From technical perspective, we saw an uptrend line on the daily technical chart which is providing trend reversal and bullish signal. The stock has arrived at N25.00 level which is a positive territory where bears were expected to lose control from the stock and the bulls were supposed to take charge and they did the same. The way the bulls are reacting seems that they are approaching N30.00 level in short term.


Presently stock is trading above all the major and minor EMA lines and providing bullish signal. Above N25.00 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 N30.00 as next target.


All odds are in favor of bulls and indicating the 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 morning star 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 a negative territory.


Intraday bias remains bullish on the stock as long as N20.00 level remains intact. The N30.00 level is key resistance level followed by N35.00 while N20.00 can be considered as key support level followed by N15.00 level.



Trade Idea:
Based on the charts and explanation above, traders can buy this stock at N25.00 level for the target price of N30.00 and N32.00 with tight stop loss of N20.00 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

ASHAKACEM posts decline in PAT by 15.27 as Revenue falls by 15.84 - Proshare

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


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