OANDO: Descending triangle has been formed

Proshare

Thursday, October 22 2015 11.30 AM / Harish Shahi, The Analyst 

A closer look on the daily chart of OANDO reveals that stock is trading in pure downtrend where every swing is making successive lower lows and lower highs and heading towards south side and stock is marking new low on a day to day basis.

Overall, bears are dominating the bulls at all nooks and crannies and not providing any chance to the bulls.

Well by looking at the chart below, we observed that momentum was totally bearish and bulls were unable to manage their self. It declined from N21.00 to N9.00 level and after arriving at N9.00 we saw a sudden penetration in the bull’s camp and trend has changed as it bounced to N12.00 level.

From technical perspective, we observed that a descending triangle on the daily technical chart where bulls are struggling to manage their self and asking for some support at oversold territory is providing strength to the bulls at an initial level.

A sustained move above N12.00 will signal further presence of buyers and will provide more strength to the bulls; this could trigger acceleration to the upside with N20.00 as next target.

The way the bulls are reacting seems that they are approaching the N20.00 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?
An engulfing candlestick followed by a bullish hammer candlestick, which is generating bullish signal. 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 N9.00 level remains intact. The N
15 level is key resistance level followed by N18.00 while N9.00 can be considered as key support level followed by N7.00 level.


Trade Idea:
Based on the charts and explanation above, traders and investors that buy at N9.87 level for the target price of N16.00 and N20.00 level with the stop loss of N8.00 .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 

Related NEWS

OANDO attracts hunters tops market as price pulls back from new low- 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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