JBERGER: has stock really bottomed out?


Friday, September 18 2015 09.30 AM / Harish Shahi, The Analyst 

A closer look on the daily JBERGER chart reveals that earlier stock was making successive lower lows and lower highs and heading towards south side. The short term trend is down and bears are dominating the bulls at every nooks and crannies. The swing has arrived at N42 level which is key support level as stock has received demand from this level earlier also.

After arriving at N42 level we have seen some trend reversal signal and stock has reached N33 level, well this is an early buy signal.  We will get further bullish confirmation once stock trades and settles above N46 level.

The current buying is a trend reversal or just a correction? Well time will tell in a few days but the current scenario is a bit confusing or everyone is thinking that really stock has bottomed out?

From technical perspective, we observed that stock has bottomed out and rounding top patter has been completed. The short term trend is down according to the daily swing chart, and momentum appears to be favour to upside. A sustained move above N46.00 will signal the further presence of buyers and will provide the more strength to bulls; this could trigger acceleration to the upside with N50 next target.

The way bulls are reacting seems that they are approaching the N50 level in short term. All odds are in favor of bulls and indicating the bullish signal.

Presently stock is trading above the all major and minor EMA lines and candles are generating trend reversal signal. Both investors and traders are displaying the 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 bullish marabuzo candlestick is generating bullish signal and trend reversal signal.  A bullish crossover on MACD indicator is also favoring the bulls. Both RSI and CCI indicators are providing bullish signal from a negative territory. 

Intraday bias remains bullish on the stock as long as N41.00 level remains intact. The N50 level is key resistance level followed by N54 whereas N40 can be considered as key support level followed by N38 level.


Trade Idea:
Based on the charts and explanation above, traders and investors can buy at N42 level for the target of N50 and N54 level with the stop loss of N38 .The tentative time frame would be 6-10 days.

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

Related NEWS 

JBERGER declares N2.23 billion PAT in Q2 15 Result SP N47.97k- 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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