FCMB: Potential rounding bottom pattern is in the process of formation.

Proshare

Monday, June 15 2015 02.55 AM / Harish Shahi, The Analyst 

A closer look at the daily chart of FCMB reveals many rallies either on downside or upside. Recently, we observed a sharp rally from N2.00 to N3.75 level then a correction i.e. retracement till N2.90 level.  By applying the Fibonacci retracement line from N2.00 to N3.75 level we found that it retraced almost 38.2% which is an opportunity to buy again.

Presently, the stock is trading below the crossed moving average minor EMA lines, but traders need not worry as it’s a good support and the stock has started receiving reversal candlestick at this support. Investors and traders are displaying bullish tendency towards the stock for the time being.  Well this is an early call but we will get further bullish confirmation above moving averages. 



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



What Next?
The consecutive hammer along with dragonfly doji candlesticks are providing purely bullish signal and reversal signal from here, so one can rely on this and can buy from here.

RSI and CCI both are generating bullish signal from positive territory.  A bullish crossover on MACD indicator is also generating bullish signal.  Intraday bias remains bullish on the stock as long as N2.50 level remains intact. The N3.75 level is key resistance level followed by N4.50 whereas N2.50 can be considered as key support level followed by N2.00 level.

Trade Idea:
Based on the charts and explanation above, traders and investors can go for BUY at N3.07 level and book profit at N4.00 and N4.40; with the stop-loss of N2.80.  The tentative time frame for this recommendation is 7-10 days.

Related NEWS
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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