CAVERTON: Stock has become a sky-rocket

Proshare

Thursday, August 14 2015 08.30 AM / Harish Shahi, The Analyst 

 


A closer look on the daily chart of
CAVERTON reveals that earlier stock was falling down and bears were leading from N5.5 level to N2.75 level but after arriving at N2.75 bears lost the control and we have seen some struggle from bear’s side.


At N2.75 to N3.00 level bulls and bears both were fighting and try to take the price on their own side, that phase can be seen as consolidation phase. After the fighting bulls got the advantage giving us valid breakout of range bound territory and providing a bullish signal.


The bulls have taken charge from N2.75 level and presently arrived at N4.00 level and the way the bulls are reacting seems that they are approaching the N5.50 level which is a strong key support level. There may be a lot of demand in the market and N3.00 continued to be a very strong support.


The short term trend is down according to the daily swing chart, and momentum appears to be in favour of the upside. A sustained move above N4.50 will signal the presence of buyers and will provide more strength to the bulls; this could trigger acceleration to the upside with N5.50 as next target. 


Well, all odds are in favor of bulls and indicating a bullish signal. Presently, stock is trading above all major and minor EMA lines and candles are generating reversal signal. Both investors and tratraders 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?

Three consecutive bullish marabuzo candlesticks are making the three white soldier price pattern and providing us totally bullish signal. Both RSI and CCI indicators have been reached into positive territory and generating neutral to bullish signal.

Intraday bias remains bullish on the stock as long as N3.0 level remains intact. The N5.50 level is key resistance level followed by N6.50 whereas N3.0 can be considered as key support level followed by N2.0 level.


Trade Idea:
Based on the charts and explanation above, traders and investors can buy at N4.00 level for the target of N5.50 and N6.50 level with the stop loss of N3.00 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 charges   


Related NEWS

CAVERTON declares N1.09 billion PAT in Q2 15 Result SP N4.03k - 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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