CCNN: Inverted head and shoulder pattern is forming

Proshare

Tuesday, July 7 2015 08.50 AM / Harish Shahi, The Analyst 

A closer look on the daily chart of CCNN reveals many whipsaws towards north side where bulls and bears are fighting to make their own winning tag. As per technical prospective, we can see that an inverted head and shoulder pattern is in the process of formation and a neck line is also lying on the daily chart.

Presently, bulls are dominating the bears at every nook and corner and a rounding bottom pattern is in the process of formation. The way the bears are reacting appears that they are approaching the N16 level. They may react aggressively once we receive the valid breakout of N13 level.

Short term to intermediate trend is down and stock is trading above all major and minor EMA lines so we are keeping our view bullish on the stock. Investors and traders are displaying bullish tendency towards the stock for the time being. 

 




 

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What Next?

A bullish divergence on the CCI Indicator is the recent development on the daily technical chart. A bullish engulfing candlestick along with marabuzo candlesticks have been posted on the daily technical chart which is generating further bullish signal.

 

Both RSI and CCI are providing further bullish signal from positive territory.  Intraday bias remains bullish on the stock as long as N10 level remains intact. The N14 level is key resistance level followed by N16 whereas N9 can be considered as key support level followed by N8 level.

 

Trade Idea:

Based on the charts and explanation above, traders and investors can buy at N11.50 level for the target of N13 and N15 level with stop loss of N10 level.  The tentative time frame would be 5-7 days.

NB: Return on Investment based on trade idea above does not take cognizance of brokerage commission charges

Related NEWS

CCNN: Bullish sentiments are on the cards - 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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