DANGCEM: Bulls lost control and the bears took charge

Proshare

Thursday, July 9 2015 09.30 AM / Harish Shahi, The Analyst 


A closer look on the daily chart of DANGCEM reveals that earlier we have seen a steep rally followed by a consolidation phase where bulls and bears were fighting to take charge and finally the bears got the charge and heading towards the down side. When we have witnessed the sharp rally in few consecutive sessions we were hoping that a bullish flag pattern has been formed and now bulls will make a new high but all in vain when it defined the session as range bound region.

From technical prospective, rounding top pattern is in the process of formation and it will complete once stock test the low of N150 level which is a key support level.  Well presently, stock is trading below all major and minor EMA lines and converted whole bullish sentiments into bearish sentiments. In the last couple of days, bears are dominating the bulls and started to turn towards downside. The way bears are reacting seems that they are approaching the N150.

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

 


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What Next?
A hanging man candlestick along with bearish marabuzo candlesticks are generating bearish signal. Both RSI and CCI are providing further bearish signal from negative territory.  Intraday bias remains bearish on the stock as long as N5 level remains intact. The N185 level is key resistance level followed by N200 whereas N160 can be considered as key support level followed by N150 level.

Trade Idea:

Based on the charts and explanation above, traders and investors should not initiate a buy position for the time being but once stock comes down to N150 level then they can go for a buy at the target price of 175 and N190 with the stop loss of N130 level.   The tentative time frame would be 10-12 days.

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

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For further details, kindly contact
analyst@proshareng.com 

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