ETI: Long term uptrend line is laying, you can buy

Proshare

Tuesday, December 22, 2015 11.10 AM / Harish Shahi, The Analyst 

A closer look on the daily chart of ETI reveals that stock is heading towards north side and is rising up by taking support from the uptrend line. Also, it is making successive higher highs and higher lows.

Stock is constantly moving up from N9.50 to N26.07 level but after arriving at an overbought territory, we saw some profit booking in terms of retracement. As bulls could not sustain at that level and the bears took the charge at an initial level.

From technical perspective, we can see that a long term uptrend line is lying on the daily technical, the bulls are receiving demand at every time and swings are making successive higher highs and higher lows by taking a bounce from this line only.

Last week, we saw some bullish attempts at this line which is creating hope for bullish momentum. Well, buying on dips should be profitable strategy in this market and the current dip is over so it’s time to initiate your buy position.

The way the bulls are reacting seems that they are approaching N25.00 level in long term and further more. Presently, stock is trading between all major and minor EMA lines and providing bullish signal.

Above N18.00 level it will provide us further presence of bulls and will provide the more strength to bulls; this could trigger acceleration to the upside with N20.00 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.



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



What Next?
A bullish engulfing candlestick followed by bullish marabuzo candlestick pattern 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 N14.00 level remains intact. The N20.00 level is key resistance level followed by N24.00 while N14.00 can be considered as key support level followed by N12.00 level.

 

 

Trade Idea:

 

Based on the charts and explanation above, traders can buy this stock at N16.70 level for the target price of N20.00 and N22.00 with tight stop loss of N14.00 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

 

ETI Declares N60.63 bln PAT in Q3 15 Result SP 18 08k

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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