HONYFLOUR: The bulls are making efforts to reverse the trend

Proshare

 

Friday, November 27, 2015 08.30 AM / Harish Shahi, The Analyst 

A closer look on the daily chart of HONYFLOUR reveals that stock is trading in pure downtrend where every swing is making successive lower highs and lower lows and a downtrend line is lying on the daily technical chart which is providing strength to the bears.

 

Stock spring up from N4.00 to N2.00 level but after arriving at that level we saw some counter-attack from the bull’s camp which created the hope of trend reversal.

 

The bulls’ reaction suggests that they are approaching N2.50 level. A valid breakout of N2.50 level will open the way towards N3.00 and N3.50 level.

 

The trend will convert form downtrend to uptrend and from technical perspective we observed that a divergence of RSI on the daily technical chart is providing further bullish signal for the time being.

 

If it sustains above N2.50 level then it will signal further presence of buyers and will provide more strength to bulls; this could trigger acceleration to the upside with N4.00 as next target.

 

Well, it is an early buy signal, we will get further bullish signal once stock trades and settles above 2.50 level. Stock is now heading north side, however, some corrections can’t be ruled out. All odds are in favor of the bulls and indicating a bullish signal.

 

 

Presently, stock is trading below all major and minor EMA lines and candles are generating bullish signals. 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 hammer candlestick followed by a morning star candlestick is generating further bullish signal. A bullish crossover on MACD indicator is also favoring the bulls. Both RSI and CCI indicators are providing bullish signal from a positive territory.

Intraday bias remains bullish on the stock as long as N1.50 level remains intact. The N3.00 level is key resistance level followed by N3.50 while N1.50 can be considered as key support level followed by N1.00 level.

 

Trade Idea:
Based on the charts and explanation above, traders and investors can buy at N2.80 level for the target price of N2.50 and N3.00 with the tight stop loss of N1.50.The tentative time frame would be 8-10 days.

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

Related NEWS
HONYFLOUR declares N903 million PAT in Q2 16 Result SP N2.58k- 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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