DANGFLOUR: Bulls are trying to engage in counter-attack at an initial phase

Proshare

Monday, November 16, 2015 10.30 AM / Harish Shahi, The Analyst 

A closer look on the daily chart of DANGFLOUR reveals that earlier stock is consistently falling down from N5.54 to N2.30 level and stock is trading in pure downtrend where every swing is making successive lower lows and heading towards downside.

Overall, bears were knocking out the bulls consistently after some correction. When stock arrived at an oversold territory of N2.30 level and bulls are unable to take the breath so they are trying to get rid off from this territory.

From technical perspective, we observed that a downtrend line is lying on the daily technical chart which is providing bearish signal for the time being. A sustained move above N2.75 i.e. a valid breakout of downtrend line will signal further presence of buyers and will provide more strength to the bulls; this could trigger acceleration to the upside with N4.20 as next target.

The way bulls are reacting seems that they are approaching the 4.20 level in short term. All odds are in favor of the bulls and indicating a bullish signal.

Presently, stock is trading above all major and minor EMA lines and candles are generating 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 hammer candlestick followed by an inside bar candlestick is generating bullish signal. A bullish crossover on MACD indicator is also favoring the bears. Both RSI and CCI indicators are providing bullish signal from a negative territory.

Intraday bias remains bearish on the stock as long as N2.00 level remains intact. The N4.00 level is key resistance level followed by N6.00 while N2.00 can be considered as key support level followed by N1.50 level.

Trade Idea:
Based on the charts and explanation above, traders and investors can buy at N2.53 for the target price of N3.50 and N4.53 level with the stop loss of N2.00 .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

DANGFLOUR declares N9.11billion loss in Q3 15 results SP N3.19k- 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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