FO: Stock has bottomed out with double bottom pattern emerging

Proshare

Thursday, June 11 2015 09.15 AM / Harish Shahi, The Analyst 

A closer look on the daily chart of FO reveals that stock has been bottomed out with the formation of double bottom pattern as we can see earlier bears were leading in the game and they were pulling the cart and then after reaching at N150 level it bounced back from there due to strong demand zone.

Presently, stock is trading below all major and minor EMA lines but it seems shortly it will break the moving averages and will come up. The N190 level is strong breakout level a valid breakout of this level will open the way towards the N220 and N250 level.

Short term to intermediate term trend is down so buy at bottom side when stock has given us reversal signal.  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?

Yesterday, we saw a bullish storm where it bounced almost 10% which was expected in advance, the way bulls are reacting it seems that they are approaching the N190 and N220 level in short term.

A bullish marabuzo along with bullish harami pattern candlesticks have been posted on daily technical chart which is generating bullish signal further bullish confirmation we will receive above N190 level.

Both RSI and CCI are generating bullish signal from positive territory. A bullish crossover on MACD indicator is also generating bullish signal.  Intraday bias remains bullish on the stock as long as N150 level remains intact. The N200 level is key resistance level followed by N220 whereas N150 can be considered as key support level followed by N130 level.

Trade Idea:
Based on the charts and explanation above, traders and investors can go for a BUY at N173.23 level and book profit at N190 and N210; with the stop-loss of N150.

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

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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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