FCMB: has stock really bottomed out?


Tuesday, October 13 2015 08.10 AM / Harish Shahi, The Analyst 

A closer look on the daily chart of FCMB reveals that earlier stock was making successive lower lows and lower highs and heading towards south side. Stock is trading towards downtrend as the bears were dominating the bulls at every nooks and crannies and was trading below all major and minor EMA lines.

It declined from N3.74 to N2.00 level in short term and convinced all the bears to make the downtrend. Well by looking at the chart below, we observed that the momentum was totally bearish and bulls were unable to manage their self.

After arriving at N2.00 we saw sudden penetration in the bulls’ camp but that was limited to N2.60 level and again it declined to N2.00 level from where we are expecting the double bottom pattern.

From technical perspective, we observed double bottom pattern on the daily technical chart which is providing strength to the bulls. The short term trend is up according to the daily swing chart and momentum appears to be in favour of an upside.

A sustained move above N2.60 will signal further presence of buyers and will provide more strength to the bulls; this could trigger acceleration to the upside with N3.60 next target.

The way bulls are reacting seems that they are approaching the N3.60 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 piercing pattern candlestick followed by a bullish marabuzo candlestick, which is generating bullish signal. 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 N2.00 level remains intact. The N2.80 level is key resistance level followed by N3.40 while N2.00 can be considered as key support level followed by N1.50 level.

Trade Idea:
Based on the charts and explanation above, traders and investors can buy at N2.22 level for the target price of N2.80 and N3.20 level with the stop loss of N1.80 .The tentative time frame would be 8-10 days.

NB: Return on Investment based on trade idea above does not take cognizance of brokerage commission

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FCMB breaks 8mths support line on fresh sell-off wave - 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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