NEM: Bulls are making the base to take off

Proshare

Tuesday, August 18 2015 08.38 AM / Harish Shahi, The Analyst 

A closer look on the daily chart of NEM reveals that earlier stock was falling down and  making successive lower lows and lower highs; heading towards south side. A downtrend line is also lying on the daily technical chart which is providing supply pressure.  Bears were controlling the game and dominating the bulls at every nooks and crannies.


After arriving at N0.60 level bears are struggling to decline further and the way bears are unable to move on further downside seems that the bottom out process is going on, at the same time bulls are trying their best to get the price at upside. This is an early reversal signal and we will get further confirmation once stock trades and settles above N0.70 level.


There may be a lot of demand in the market and N0.60 continued to be a very strong support. The short term trend is down according to the daily swing chart, and momentum appears to be in favour of the upside. A sustained move above N0.75 will signal the presence of buyers and will provide more strength to the bulls; this could trigger acceleration to the upside with N0.95 as next target. 


All odds are in favor of bulls and indicating a bullish signal. Presently, stock is trading below all major and minor EMA lines but candles are generating reversal 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 piercing candlestick followed by bullish marabuzo candlesticks at strong key support level is providing us some reversal signal. Both RSI and CCI indicators are providing us trend reversal signal from oversold territory and generating bullish signal.

Intraday bias remains bullish on the stock as long as N0.50 level remains intact. The N0.80 level is key resistance level followed by N0.95 whereas N0.50 can be considered as key support level followed by N0.40 level.


Trade Idea:
Based on the charts and explanation above, traders and investors can buy at N0.65 level for the target price of N0.85 and N0.95 level with stop loss of N0.55.  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 charges   


Related NEWS

NEM Blood bath is going on with sharp sell-off - 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 


Last 10 Technical Analyst Reviews You Might Like:

1.      AIICO:  Shifting of direction from down to up; good news for buyers

2.      HONYFLOUR:  Stock has bottomed out; just grab the opportunity

3.      CAVERTON:  Stock has become a sky-rocket

4.      FCMB:  Stock arrives at Fibonacci golden retracement level

5.     UBN:  Rounding Bottom Pattern Is In the Last Phase of Completion

6.      VONO:  Symmetrical triangle is in the process of formation

7.      FLOURMILL:  Buying opportunity with good risk & reward ratio

8.     NESTLE: Accumulation at initial level with low participation

9.      VITAFOAM:  Massive bullish storm is on the card

10. UBCAP:  Potential rounding bottom pattern; A buying opportunity

READ MORE:
Related News
SCROLL TO TOP