ETERNA: Stock is providing bullish signal of bottoming out process


Thursday, November 12, 2015 09.40 AM / Harish Shahi, The Analyst 

A closer look on the daily chart of
ETERNA reveals that earlier stock is falling down from N3.45 to N1.20 level and stock was trading in pure downtrend where every swing is making successive lower lows and lower highs and heading towards downside.

Overall, bears were knocking out the bulls consistently after some correction. When stock arrived at the oversold territory of N1.50 level, the bulls tried their best and showed their full strength.


From technical perspective, we observed that bottoming out process at initial level on the daily technical chart is providing bullish signal for the time being. A sustained move above N2.00 will signal further presence of buyers and provide more strength to the bulls; this could trigger acceleration to the upside with N3.20 as next target.


The way bulls are reacting seems that they are approaching the 3.20 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 N1.50 level remains intact. The N2.40 level is key resistance level followed by N2.80 while N1.50 can be considered as key support level followed by N1.00 level.

Trade Idea:
Based on the charts and explanation above, traders and investors can buy at N1.85 for the target price of N2.20 and N2.50 level with the stop loss of N1.50 .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


Related NEWS

ETERNA declares N687.81 million PAT in Q3 15 Result SP N1.76k- Proshare


To View Technical and Interactive Chart with Indicators like MACD, RSI, Stochastic, Moving Average, Bollinger, Williams %R, MFI ... Click HERE


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