CCNN: Stock Records Bullish breakout

Proshare

Tuesday, December 29, 2015 3 10.00 AM / Harish Shahi, The Analyst 

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

 

Stock was constantly moving down from N12.35 to N7.39 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 and the bulls took charge at an initial level. Presently, bulls are dominating the bears and heading towards north side.

 

From technical perspective, we can see a bullish breakout of downtrend lines on the daily technical chart which is providing trend reversal and bullish signal. The stock has arrived at N8.32 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. Well the way bulls are reacting seems that they are approaching N10.00 and N12.00 level in short term.

 

Presently stock is trading above all major and minor EMA lines and providing bullish signal. Above N9.50 level, it will provide further presence of the bulls and will also provide more strength to the bulls; this could trigger acceleration to the upside with N12.00 as next target.

 

All odds are in favor of the bulls and indicating a bullish signal. Both investors and traders are displaying 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 a negative territory.

 

Intraday bias remains bullish on the stock as long as N7.50 level remains intact. The N10.00 level is key resistance level followed by N12.00 while N7.50 can be considered as key support level followed by N7.00 level.

 

 

Trade Idea:
Based on the charts and explanation above, traders can buy this stock at N8.31 level for the target price of N9.00 and N10.00 with tight stop loss of N7.40 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

 

CCNN posts 5.07 decline in PAT as Revenue down by 6.30 - 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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