CONTINSURE: Massive bullish storm; just buy it

Proshare

Friday, December 18, 2015 10.10 AM / Harish Shahi, The Analyst 

A closer look on the daily chart of
CONTINSURE reveals that earlier stock was falling down consistently by getting pressure from the downtrend line and was making successive lower highs and lower lows. Stock was constantly falling down from N1.10 to N0.80 level but after arriving at oversold territory bears could not manage their self and we saw some reversal signals.

From technical perspective, we have seen that a double bottom pattern has been formed and we also expected reactions on the daily technical chart. Presently, stock is making higher highs and higher lows on a day to day basis and sustaining at N1.10 level. Well a valid breakout of N1.10 level will open the way towards N1.30 level in short term.

The way the bulls are reacting seems that they are approaching N1.20 level in short term and stock is trading above all major and minor EMA lines and providing further bullish signal. Above N1.10 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 N1.30 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.



To View Technical and Interactive Chart with Indicators like MACD, RSI, Stochastic, Moving Average, Bollinger, Williams %R, MFI ... 
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What Next?
A bullish marabuzo candlestick followed by three white soldier candlestick patterns 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 N0.85 level remains intact. The N1.30 level is key resistance level followed by N1.50 while N0.80 can be considered as key support level followed by N0.70.

Trade Idea:
Based on the charts and explanation above, traders can buy this stock at N1.10 level for the target price of N1.30 and N1.50 with tight stop loss of N0.90 level. The tentative time frame would be 8-10 days.

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


Related NEWS

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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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