FCMB: Counter-attack may result positive at an initial phase


Monday, December 21, 2015 11.30 AM / Harish Shahi, The Analyst 

A closer look on the daily chart of FCMB reveals that earlier stock was falling down consistently due to pressure from downtrend line and was making successive lower highs and lower lows.

Stock was constantly falling down from N3.74 to N1.65 level but after arriving at an oversold territory bears could not manage their self as we have seen some reversal signals. The Bulls are not ready to move down further and that has generated some panic reactions.

From technical perspective, we saw that a downtrend line is lying on the daily technical chart, due to which our long term view is still bearish but we are expecting that the bulls will react more aggressively once they trade and settles above this downtrend line.

The way the bulls are reacting seems that they are approaching N3.00 level in short term and stock is trading below all major and minor EMA lines and providing further neutral to bullish signal.

Stock settling above N2.00 level will provide further presence of the bulls and will provide more strength to the bulls; this could trigger acceleration to the upside with N3.00 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.

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  What Next?
A piercing pattern candlestick is penetrating the previous candle from bottom side followed by bullish marabuzo 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 N1.50 level remains intact. The N2.40 level is key resistance level followed by N2.60 while N1.50 can be considered as key support level followed by N1.20 level.

Trade Idea:
Based on the charts and explanation above, traders can buy this stock at N1.82 level for the target price of N2.20 and N2.50 with tight stop loss of N1.50 level. 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 HE

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