MOBIL: Trend has changed completely with bullish storm

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Thursday, December 24, 2015 01.50 AM / Harish Shahi, The Analyst 
 

A closer look on the daily chart of MOBIL reveals that stock was heading towards south side and was falling down by taking the supply pressure from the downtrend line and making successive lower highs and lower lows.  

Stock was constantly moving down from N180 to N120 level but after arriving at oversold territory we saw some reversal signal in terms of counter-attack. As bears could not sustain the level and the bulls took charge at that level.
 

Presently, the bulls are dominating the bears and heading towards north side. From technical perspective, we saw that a valid breakout of downtrend line on the daily technical chart which is providing us bullish signal.
 

The stock has arrived N120.00 level which is an extreme oversold territory where bears were expected to lose control from the stock and bulls were supposed to take the charge and they did the same. Well, the way bulls are reacting seems that they are approaching N160.00 and N180.00 level in short term.
 

Presently, stock is trading between all major and minor EMA lines and providing bullish signal. Above N150.00 level, it will provide further presence of the bulls and will provide more strength to the bulls; this could trigger acceleration to the upside with N180.00 next target.
 

All odds are in favor of bulls and indicating a 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 piercing pattern candlestick followed by bullish marabuzo candlestick pattern is generating bullish signal for the time being. A bullish crossover on MACD indicator is also favoring the bulls. Both RSI and CCI indicators are providing bullish signal from negative territory.
 

 

Intraday bias remains bullish on the stock as long as N120.00 level remains intact. The N160.00 level is key resistance level followed by N180.00 whereas N120.00 can be considered as key support level followed by N100.00 level.
 

Trade Idea:
Based on the charts and explanation above, traders can buy this stock at N143.00 level for the target price of N160.00 and N180.00 with tight stop loss of N120.00 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

 
Related NEWS

MOBIL Q3 Sales Decline by 27 YoY Stock Rated NEUTRAL
 

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:

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3.      ETI: Long term uptrend line is laying, you can buy

4.      FO: Stock has presented a second buying opportunity

5.      FCMB: Counter-attack may result positive at an initial phase

6.      FIDELITYBK: A bullish breakout from the consolidation phase

7.      CONTINSURE: Massive bullish storm; just buy it

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9. UBN: Eventually bullish breakout is seen after a long tug of war

10.PZ: Trend has changed as rounding bottom pattern is forming

 

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