NB: Stock is heading towards north side as the bulls are dominating

Proshare

Wednesday, December 23, 2015 10.50 AM / Harish Shahi, The Analyst 

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

Stock is constantly moving down from N150 to N110 level but after arriving at an oversold territory, we saw some reversal signal in terms of counter-attack.

As bears could not sustain at that level, the bulls took charge and presently they are dominating the bears and heading towards north side. From technical perspective we saw that a double bottom pattern on the daily technical chart is providing bullish signal.

The stock has arrived N110.00 level which is an extreme oversold territory where bears were expected to lose control from the stock and bulls were supposed to take charge and they did exactly the same. The way the bulls are reacting seems that they are approaching N140.00 and N150.00 level in short term.

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

All odds are in favor of the bulls and indicating a bullish signal. Both investors and traders are displaying bullish tendency towards the stock for the time being.



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What Next?
A bullish engulfing 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 us bullish signal from negative territory.


Intraday bias remains bullish on the stock as long as N100.00 level remains intact. The N140.00 level is key resistance level followed by N160.00 whereas N100.00 can be considered as key support level followed by N80.00 level.

Trade Idea:
Based on the charts and explanation above, traders can buy this stock at N121.80 level for the target price of N140.00 and N160.00 with tight stop loss of N110.00 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

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For further details, kindly contact analyst@proshareng.com 

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