DIAMONDBNK: Formation of rounding bottom pattern is in demand


 Friday, July 10 2015 08.40 AM / Harish Shahi, The Analyst 


A closer look on the daily chart of DIAMONDBNK reveals many whipsaws with valid volatility. A balanced demand and supply is going on with the formation of rounding bottom pattern. As we can see that bulls and bears are fighting to take the advantage but overall bears are dominating the bulls. The way bears are reacting it seems that they are approaching the N3.5 level.


Short terms to intermediate trend is up and in an uptrend market always buy on dips so we are waiting for further buying opportunity. Investors and traders are displaying bearish tendency towards the stock for the time being.  Presently, stock is trading below major and minor EMA lines which is generating further bearish signal.



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What Next?

A dark cloud candlestick along with three consecutive bearish marabuzo candlesticks are generating total bearish signal. Both RSI and CCI are providing further bearish signal from negative territory.  Intraday bias remains bearish on the stock as long as N4.50 level remains intact. The N5 level is key resistance level followed by N7 whereas N3.5 can be considered as key support level followed by N2.5 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 N3.5 level then we can go for buy at the target price of 4.5 and N5.5 with the stop loss of N2.5 level. The tentative time frame would be 12-15 days.

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


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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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