FIDELITYBK: A bullish breakout from the consolidation phase

Proshare

Monday, December 21, 2015 11.00 AM / Harish Shahi, The Analyst 

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

Stock was constantly falling down from N2.28 to N1.16 level but after arriving at an oversold territory, bears could not manage their self and we saw some panic buying with the formation of double bottom pattern but that was limited to N1.60 level.

After that, the stock has entered into a consolidation phase where both bulls and bears are fighting with each other but no one is getting advantage on each other.

Eventually, we have seen a bullish breakout of this consolidation phase which is good news for investors and traders; it’s time to participate in this stock once again.

From technical perspective, we can see a range bound territory on the daily technical chart, due to which our view is still neutral to bullish but we are expecting that the bulls will react more aggressively once they trade and settles above N1.60 level i.e. previous swing’s high.

The way the bulls are reacting seems that they are approaching N2.20 level in short term and stock is trading above all major and minor EMA lines and providing further neutral to bullish signal.

The stock settling above N1.60 level will provide further presence of the bulls and will also provide more strength to the bulls; this could trigger acceleration to the upside with N2.20 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.



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



What Next?
A gravestone doji candlestick 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 N1.20 level remains intact. The N1.70 level is key resistance level followed by N1.90 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 can buy this stock at N1.42 level for the target price of N1.60 and N1.80 with tight stop loss of N1.20 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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