FIDSON: The Bulls are engaging in counter-attack now


Friday, October 30 2015 08.30 AM / Harish Shahi, The Analyst 

A closer look on the daily chart of FIDSON reveals that earlier stock was trading in pure downtrend where every swing is making successive lower lows and lower highs and heading towards downside and stock is marking new lows on a day to day basis.

Overall, bears were dominating the bulls at every nook and cranny and not providing any chance to the bulls. The momentum was totally bearish and bulls were unable to manage their self.

It declined from N4.00 to N2.80 level in short term but after arriving at N2.80 level we saw some panic buying in the camp as stock has arrived at an oversold territory.

From technical perspective, we observed that a descending triangle on the daily technical chart is forming which is providing strength to the bulls. This is an early signal; we will get further bullish confirmation above N250.00 level.

A sustained move above N3.50 will signal further presence of buyers and will provide more strength to the bears; this could trigger acceleration to the upside with N4.50 as next target.

The way bears are reacting seems that they are approaching the N4.50 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 signals. Both investors and traders are displaying bullish tendencies 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?
An inside bar candlestick followed by a morning star candlestick is generating bullish signal. A bullish crossover on MACD indicator is also favoring the bears. Both RSI and CCI indicators are providing bullish signal from a negative territory.

Intraday bias remains bearish on the stock as long as N2.50 level remains intact. The N3.50 level is key resistance level followed by N4.00 while N2.80 can be considered as key support level followed by N2.50 level.

Trade Idea:
Based on the charts and explanation above, traders and investors can buy at N3.25 for the target price of N3.80 and N4.20 level with the stop loss of N2.50 .The tentative time frame would be 10-12 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

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