LIVESTOCK: Bulls have shown the counter-attack at an oversold territory


Wednesday, November 18, 2015 09.20 AM / Harish Shahi, The Analyst 


A closer look on the daily chart of LIVESTOCK reveals that earlier every swing was making successive lower lows and marking the whole trend as downtrend. Stock was consistently falling down from N8.00 to N1.35 level. However, some corrections can’t be ruled out.


Overall, bears are dominating the bulls consistently. When stock arrived at an extreme oversold territory of N1.35 level we saw some counter-attack.


From technical perspective, we observed a Zig-Zag pattern on the daily technical chart, which is providing bullish signal for the time being. A sustained move above N1.80 level will open the way towards the N2.20 level and will signal further presence of buyers and will also provide more strength to the bulls; this could trigger acceleration to the upside with N2.40 as next target.


The way bulls are reacting seems that they are approaching the N2.20 level in short term. All odds are in favor of bulls and indicating the bullish signal.


Presently, stock is trading above all major and minor EMA lines and candles are generating bullish signal. 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 bullish marabuzo candlestick followed by some inside bar candlesticks are generating bullish signal. A bullish crossover on MACD indicator is also favoring the bears. Both RSI and CCI indicators are providing bullish signal from a negative territory.


Intraday bias remains bearish on the stock as long as N1.00 level remains intact. The N2.00 level is key resistance level followed by N2.50 whereas 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 N1.47 for the target price of N2.20 and N2.50 level with the stop loss of N0.90 .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


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To View Technical and Interactive Chart with Indicators like MACD, RSI, Stochastic, Moving Average, Bollinger, Williams %R, MFI ... Click HERE


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