VONO: Bears tested the depth of the stock


Thursday, December 24, 2015 01.30 PM / Harish Shahi, The Analyst 

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

Stock was constantly moving down from N2.00 to N0.60 level but after arriving at an oversold territory we saw some reversal signal in terms of counter-attack. As bears could not sustain at that level, the bulls took charge at an initial level.

Presently, the bulls are dominating the bears and heading towards north side. From technical perspective, we saw that a bullish divergence of RSI indicator on the daily technical chart is providing trend reversal and bullish signal.

The stock has arrived N0.60 level which is an extreme oversold territory where bears were expected to lose control from the stock and bulls were supposed to take charge and they did the same. Well the way the bulls are reacting seems that they are approaching N1.40 and N1.80 level in short term.

Presently, stock is trading below all major and minor EMA lines and providing bullish signal. Stock settling above N1.00 level will provide further presence of the bulls and will also provide more strength to the bulls; this could trigger acceleration to the upside with N2.00 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?
An inverted hammer candlestick followed by hammer 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 N0.50 level remains intact. The N1.40 level is key resistance level followed by N1.80 whereas N0.50 can be considered as key support level followed by N0.40 level.

Trade Idea:
Based on the charts and explanation above, traders can buy this stock at N0.69 level for the target price of N1.00 and N140.00 with tight stop loss of N0.40 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

VONO sustains recovery pattern gains 22 in 5-day gaining streak- 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 


Last 10 Technical Analyst Reviews You Might Like:

1.       NB: Stock is heading towards north side as the bulls are dominating    

2.      SKYEBANK: Stock is at an extreme oversold territory; bears may lose control   

3.      ETI: Long term uptrend line is laying, you can buy

4.      FO: Stock has presented a second buying opportunity

5.      FCMB: Counter-attack may result positive at an initial phase

6.      FIDELITYBK: A bullish breakout from the consolidation phase

7.      CONTINSURE: Massive bullish storm; just buy it

8.     UNITYBNK: Bulls are snatching the bite from the bear’s mouth

9.      UBN: Eventually bullish breakout is seen after a long tug of war

10.  PZ: Trend has changed as rounding bottom pattern is forming



Related News