MANSARD: It's clear breakout; just buy it

Proshare

Thursday, November 12, 2015 09.55 AM / Harish Shahi, The Analyst 

A closer look on the daily chart of MANSARD reveals that earlier stock was falling down from N3.75 to N2.00 level and stock was trading in pure downtrend where every swing was making successively lower lows and lower highs and heading towards downside.

 

Overall, bears were knocking out the bulls consistently after some correction. When stock arrived at an oversold territory of N2.00 level then bulls tried their best and showed their full strength.

 

From technical perspective, we observed that a valid breakout on the daily technical chart is providing bullish signal for the time being. A sustained move above N2.80 will signal further presence of buyers and will provide more strength to the bulls; this could trigger acceleration to the upside with N3.20 as next target.

 

The way bulls are reacting seems that they are approaching the 3.20 level in short term. All odds are in favor of the bulls and indicating a 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?

 

Three consecutive bullish marabuzo candlesticks in the shape of three white soldier patterns is generating a 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 N2.40 level remains intact. The N3.20 level is key resistance level followed by N3.50 whereas N2.20 can be considered as key support level followed by N2.00 level.

 

Trade Idea:

 

Based on the charts and explanation above, traders and investors can buy at N2.75 for the target price of N3.20 and N3.50 level with the stop loss of N2.20 .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

 

Related NEWS

MANSARD declares N1.54 billion PAT in Q3 15 result SP N2.65k - 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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