DANGCEM: The Bulls have become more aggressive; just buy it


Tuesday, December 8, 2015 09.10 AM / Harish Shahi, The Analyst 

A closer look on the daily chart of
DANGCEM reveals that earlier stock was falling down consistently due to pressure from downtrend lines and is making successive lower highs and lower lows. It seems the bears are beating the bulls black and blue and dominating them at every nook and corner.

Stock has declined from N188.50 to N156.00 with a sharp sell-off and we can see bloodbath on the daily chart. After arriving at an oversold territory of N156.00 level we have seen a panic reaction where bulls denied moving down further and a counter attack appeared which created the hope for bullish momentum at an initial level.

Well stock has breached the downtrend line with a high voltage of volume and it seems that they are approaching N180.00 level in short term. The recent counter attack has changed the stance from bearish to bullish. A bounce back at oversold territory is a indication of further bullish sentiments.

Overall stock is facing strong downtrend but yesterday’s session has changed the view and arrived above all major and minor EMA lines. If it sustains above N170.00 level then it will change our view from bearish to bullish.

It will provide further presence of buyers and will provide more strength to bulls; this could trigger acceleration to the upside with N186.00 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, they will get more aggressive once it trades and settles above N0.80 level.

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What Next?
A bullish marabuzo candlestick followed by bullish engulfing candlestick is generating bullish signal. 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 N150.00 level remains intact. The N180.00 level is key resistance level followed by N190.00 while N150.00 can be considered as key support level followed by N140.00 level.

Trade Idea:
Based on the charts and explanation above, traders can buy at N171.00 for the target price of N180.00 and N185.00 with the strict stop loss of N160.00. 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

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