LEARNAFRCA: The Stock has bottomed out, just buy it

Proshare

Wednesday, November 4, 2015 3.30 AM / Harish Shahi, The Analyst 

A closer look at the daily chart of LEARNAFRCA revealed that the stock is trading in pure downtrend where every swing is making successive lower lows and lower highs and heading towards a downside and the stock is marking new lows on a day to day basis. Overall the bears are dominating the bulls at every nook and cranny and not providing any chance to bulls. The momentum is totally bearish and the bulls are unable to manage their self. It declined from N1.45 to N0.65 level in the short term but after arriving at N0.65 level we have seen some reversal candlestick and finally it bottomed out.

From a technical perspective, we observed a V shape recovery at the oversold territory on the daily technical chart, which is providing strength to the bulls. Well, this is an early signal and we expect to get further bullish confirmation above N1.20 level. A sustained move above N0.90 will signal the further presence of buyers and will provide more strength to bears; this could trigger acceleration to the upside with N1.40 next target.

The way bulls are reacting it seems that they are approaching the N1.40 level in the short term. Well odds are in favor of bulls and indicating the bullish signal. Presently, the stock is trading above all the major and minor EMA lines and candles are generating bullish 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 dragonfly doji candlestick followed by hammer candlestick, which is generating bullish signal. A bullish crossover on MACD indicator is also favoring the bears. RSI and CCI indicators both are providing us bullish signal from negative territory. Intraday bias remains bearish on the stock as long as N0.60 level remains intact. The N
1.20 level is a key resistance level followed by N1.60 whereas N0.60 can be considered as key support level followed by N0.50 level.


Trade Idea:
Based on the charts and explanation above, traders and investors can buy at N0.71 for the target of N1.00 and N1.50 level with the stop loss of N0.60. 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

 

 

LEARN AFRICA declares N3.91 million PAT in Q3 15 result SP N0.68k

 

 

 

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 

Last 10 Technical Analyst Reviews You Might Like:

1.      OANDO: Steep sell-off and a penetration of the bulls    

2.     VONO: Potential Rounding Bottom Pattern is Forming     

3.      ZENITHBANK: Uptrend has started in short term              

4.      UBCAP: Rounding top pattern has been completed           

5.      FIDSON: The Bulls are engaging in counter-attack now          

6.      SEPLAT: Bears are losing their grip at oversold territory           

7.      FO: The Bulls have started a new journey; Mother of Bull Run is expected          

8.     NB: This correction is a buying opportunity         

9.      GUARANTY: Stock completes Rounding Bottom Pattern       

10.  FLOURMILL: Stock is heading towards south side with descending triangle formation 

READ MORE:
Related News
SCROLL TO TOP