FBNH: Bulls are dared to mess with the bears

Proshare

Thursday, December 31, 2015 07.00 AM / Harish Shahi, The Analyst 

A closer look on the daily chart of FBNH 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 N11.00 to N4.58 level but after arriving at that level, we saw panic counter-attack and it bounced back to N5.10 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 the bulls took charge. Presently, the bulls are dominating the bears and heading towards north side. Well it’s an early buy signal; we will get further bullish confirmation above N6.00 level.  

 

 

 

 

 

 

 

From technical perspective, we can see that the downtrend line still exists on the daily technical chart, so a valid breakout of this line will open the way towards N8.00 level. The way bulls are reacting seems that they are approaching N3.00 and N4.00 level in short term. Well the primary and second trend is down, so in a downtrend market its always better to avoid buying for long terms, one can go for buy for short term only.

 

 

 

 

 

 

Presently stock is trading above all major and minor EMA lines and providing bullish signal. Above N6.00 level, it will provide further presence of the bulls and will provide more strength to the bulls; this could trigger acceleration to the upside with N8.00 as next target. All odds are in favor of the 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 morning star candlestick followed by bullish engulfing 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 N4.50 level remains intact. The N6.50 level is key resistance level followed by N8.00 whereas N4.00 can be considered as key support level followed by N3.00 level.

 

Trade Idea:

Based on the charts and explanation above, traders can buy this stock at N5.00 level for the target price of N6.50 and N7.00 with tight stop loss of N4.20 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

 

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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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4.     ASHAKACEM: Bullish wave is appearing as stock is retracing     

 

 

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6.  VONO: Bears tested the depth of the stock      

 

 

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