FIDELITYBK: Tug of war is going on between the bulls & the bears


Tuesday, November 24, 2015 08.40 AM / Harish Shahi, The Analyst 

A closer look on the daily chart of
FIDELITYBK reveals that earlier every swing was making successive lower highs and lower lows by taking supply from the downtrend line, the whole trend was downwards but all of a sudden we saw some panic buying from N1.16 to N1.60 level.

Stock has bottomed out along all indicators but the rally was limited to N1.60 level and then both the bulls & the bears were fighting with each other for the fame. The current tug of war indicates that it’s better to stay away for the time being and let it give a valid breakout of N1.60 level.  Stock is consistently moving down from N2.30 to N1.15 level. However, some corrections can’t be ruled out.

Overall, bulls are dominating the bears consistently, when stock arrived at an extreme oversold territory of N1.15 level, we saw panic reaction or we can say that bears denied moving down further. Bulls bounced back towards upside as we observed counter-attack from the bull’s camp.

Presently, stock has arrived at N1.50 level which is a make or breaks level, if it sustains above that level then the whole trend will change and from technical perspective we observed that a falling wedge pattern has been formed on the daily technical chart which is providing bullish signal for the time being.

A sustained move above N1.50 level will open the way towards N1.50 level and will signal further presence of buyers and which will also provide more strength to the bulls; this could trigger acceleration to the upside with N2.20 as next target.

The way bulls are reacting seems that they are approaching N2.20 level in short term. All odds are in favor of the bulls and indicating a bullish signal.

Presently, stock is trading between 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.

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What Next?
Some inter reversal candlesticks like hanging man and a bullish marabuzo candlestick cutting the cross effect of it and stock is unable to move on either side and it’s generating neutral signal for the time being. A bullish crossover on MACD indicator is also favoring the bulls. Both RSI and CCI indicators both are providing bullish signal from a positive territory.

Intraday bias remains bearish on the stock as long as N1.20 level remains intact. The N1.80 level is key resistance level followed by N2.20 while N1.20 can be considered as key support level followed by N1.00 level.

Trade Idea:
Based on the charts and explanation above, traders and investors can buy at N1.40 for the target price of N1.80 and N2.00 level with the stop loss of N1.10 .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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