GUINNESS: Uptrend line has breached out; bears are out of control

Proshare

Thursday, July 9 2015 08.30 AM / Harish Shahi, The Analyst 

 

A closer look on the daily chart of GUINNESS reveals that swings were making successive higher highs and higher lows and heading towards upside. An uptrend line was also lying on the chart which was the bench strength for the bulls.

 

We have seen a fabulous rally from N110 to N190 where bulls were in demand and controlling the game but after arriving at N190 it reversed to N145 level in just couple of sessions. Bears were full of pressure and they breached the uptrend line. Presently, stock is surviving below all major and minor EMA lines.

 

From last couple of days, bears are dominating the bulls and started to turn towards downside. The way bears are reacting it seems that they are approaching the N110.

 

Short terms to intermediate trend is up and in an uptrend market always buy on dips so we are waiting for the further buying opportunity. Investors and traders are displaying bearish 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?
Three consecutive bearish marabuzo candlesticks are generating totally bearish signal. Both RSI and CCI are providing further bearish signal from negative territory.  Intraday bias remains bearish on the stock as long as N160 level remains intact. The N180 level is key resistance level followed by N190 whereas N130 can be considered as key support level followed by N110 level.

Trade Idea:
Based on the charts and explanation above, traders and investors should not initiate a buy position for the time being but once stock comes down to N120 level then we can go for a buy for the target price of 160 and N190 with the stop loss of N100 level.   The tentative time frame would be 12-15 days.

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

Related NEWS

GUINNESS Bulls are on the rocks just grab it.  - Proshare

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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