ETERNA: Bulls have taken off now, just enjoy the bullish journey

Proshare

Wednesday, December 30, 2015 06.50 AM / Harish Shahi, The Analyst 

A closer look on the daily chart of
ETERNA reveals that stock was heading towards south side and was falling down due to pressure from the downtrend line and making successive lower highs and lower lows. Stock was constantly moving down from N3.38 to N1.36 level but after arriving at that level, we saw panic counter-attack and it bounced back to N2.00 level.

 

Stock moved up above the moving averages and sustained above that level which creates hope for the bulls as bears could not sustain at that level and bulls took charge. Presently the bulls are dominating the bears and heading towards north side.

 

From technical perspective, we can see that the downtrend line has breached out on the daily technical chart which is providing trend reversal and bullish signal. The stock has arrived N2.00 level which is a positive territory where bears were expected to lose control from the stock and bulls were supposed to take charge and they did the same.

 

Well, the way bulls are reacting it seems that they are approaching N3.00 level in short term. Well this is an early buy signal we will get further bullish confirmation above N2.00 level.

 

Presently stock is trading above all major and minor EMA lines and providing bullish signal. Above N2.00 level, it will provide further presence of the bulls and will provide the more strength to the bulls; this could trigger acceleration to the upside with N3.00 as next target.

 

All odds are in favor of bulls and indicating a bullish signal. Both investors and traders are displaying the 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 bullish marabuzo candlestick followed by bullish engulfing candlestick pattern which is generating bullish signal for the time being. 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 N1.00 level remains intact. The N3.00 level is key resistance level followed by N3.50 whereas N1.00 can be considered as key support level followed by N0.80 level.

 


Trade Idea:
Based on the charts and explanation above, traders can buy this stock at N2.00 level for the target price of N2.50 and N3.00 with tight stop loss of N1.00 level. 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

For further details, kindly contact analyst@proshareng.com 

 

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