HONYFLOUR: Bulls have sky rocketed

Proshare

Friday, June 19 2015 08.50 AM / Harish Shahi, The Analyst 

A closer look on the daily chart of HONYFLOUR reveals that bulls are making successive higher highs and higher lows which mean that the bulls are dominating the bears and stock is trading towards uptrend.

Bulls started their journey from N2.60 to N4.10 level after reaching the top. We have seen some profit booking or retracement which is a healthy sign for buyers to buy again.

An uptrend line is also lying on the daily technical chart which is generating a signal. The reactions of the bulls seem they are approaching the N6.00 and N7.50 level. Presently, stock is trading above the crossed EMA lines which is generating bullish 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?
The bullish marabuzo candlestick is providing us further bullish signal and an ascending triangle price pattern is in process of formation which implies that the bulls will react aggressively above N4 level bulls.

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 N3.60 level remains intact. The N4.50 level is key resistance level followed by N5.00 whereas N3.50 can be considered as key support level followed by N3.00 level.

Trade Idea:
Based on the charts and explanation above, traders and investors can go for a BUY at N3.82 level and book profit at N4.35 and N4.75; with the stop-loss of N3.40.  The tentative time frame for this recommendation is 6-8 days.

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

Related NEWS
HONYFLOUR Expanding to Deliver Good Returns Records N1.23bn PBT in Q3 - 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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