OANDO: Falling down due to bearish pressure

Proshare

Thursday, July 02 2015 09.30 AM / Harish Shahi, The Analyst 

A closer look on the daily chart of OANDO reveals that bears are rocking from the starting onwards as we can see that earlier bears took the charge from N37 to N12.84 level and then we have seen some profit booking or we can say some retracement till N20.00 level. But as we know that in the downtrend, market always sell on rise and buy on dips, so that correction was the opportunity for the buyer’s to exit from the stock.

Presently, we can see that stock is heading towards north side and trading below all major and minor EMA lines the bears are maintaining the totally bearish momentum.

A rounding top price pattern is in process of formation which is providing us totally bearish signal and suggesting us that keep away from this stock, it’s not a time to buy the stock.

Short term to intermediate trend is down and stock is trading below all major and minor EMA lines so in that case we buy at support level with strong reversal signal so we are waiting for the N13.00 level. Investors and traders are displaying bearish 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 hanging man and dark cloud candles have posted on the daily technical chart which is a clear sign of further bearish signal.  Both RSI and CCI are generating bearish signal from negative territory. Intraday bias remains bearish on the stock as long as N18.00 level remains intact. The N18.00 level is key resistance level followed by N20.00 whereas N13.00 can be considered as key support level followed by N11.00 level.

 

Trade Idea:

Based on the charts and explanation above, traders and investors should wait for the support level and then initiate a buy position at N13.00 level for the target of N16.00 and N18.00 level with the stop loss of N11.00. The tentative time frame would be 10-14 days.

NB: Return on Investment based on trade idea above does not take cognizance of brokerage commission charges

Related NEWS

OANDO cracks 50 Fibonacci retracement point as active sell looms- 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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