IKEJAHOTEL: A bullish breakout of consolidation phase

Proshare

Friday, July 10 2015 08.30 AM / Harish Shahi, The Analyst 

 

A closer look on the daily chart of IKEJAHOTEL reveals that stock was trading in the range bound area from last couple of weeks. Bulls and bears were unable to move on either side due to which we have seen low volatility and lost the interest from the buyers and sellers. But yesterday we have a bullish breakout of the consolidation phase which was already anticipated and now a sharp rally towards N5 level is expected.

 

As per Dow Theory, the accumulation phase is over and now it’s participation phase which has started. Overall, a balanced demand and supply is going on with the formation of rounding bottom pattern. As we can see that bulls and bears are fighting to take the advantage but overall bulls are dominating the bears. The way bears are reacting it seems that they are approaching the N5 level.

 

Short terms to intermediate trend is up and in an uptrend market always buy on dips so we are waiting for further buying opportunity. Investors and traders are displaying bullish tendency towards the stock for the time being.  Presently, stock is trading above major and minor EMA lines which is generating further bullish signal.



 

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 along with piercing pattern candlestick is generating total bullish signal. A bullish breakout of moving average is also favoring the bulls for the time being.

Both RSI and CCI are providing further bullish signal from positive territory.  Intraday bias remains bullish on the stock as long as N3.50 level remains intact. The N5 level is key resistance level followed by N7 whereas N3 can be considered as key support level followed by N2.5 level.


Trade Idea:
Based on the charts and explanation above, traders and investors can buy at current market price i.e. N4.10 for the target of 5 and N5.5 with the stop loss of N3.5 level. The tentative time frame would be 6-8 days.

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

Related NEWS

KEJAHOTEL A valid breakout of Moving Average is about to form- 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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3.    CCNN: Inverted head and shoulder pattern is forming

4.    NEIMETH:  Bulls are playing at the front foot

5.    VITAFOAM: Stock has bottomed out; a fantastic rally is awaited.

6.    ACCESS: Bears are controlling the game in their own way

7.    AFRIPRUD: Balanced demand and supply is going on

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9.    OANDO: Falling down due to bearish pressure

10. STERLNBANK: Bulls made the counter-attack on the bears.

 

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