OANDO: Steep sell-off and a penetration of the bulls

Proshare

Tuesday, November 3, 2015 09.30 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 downside and stock is marking new lows on a day to day basis.

Overall, bears are dominating the bulls at every nook and cranny and not providing any chance to the bulls. The momentum is totally bearish and bulls are unable to manage their self.

It declined from N21.00 to N5.30 level in short term but after arriving at N5.30 level we have seen some buying in the camp as stock has arrived an oversold territory. 

From technical perspective, we observed that a sell-off and a penetration of bulls on the daily technical chart is providing strength to the bulls. Well, this is an early signal; we will get further bullish confirmation above N8.00 level.

A sustained move above N8.00 will signal further presence of buyers and will provide more strength to the bears; this could trigger acceleration to the upside with N12.00 next target.

The way bulls are reacting seems that they are approaching the N12.00 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 tendencies 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 morning star candlestick is generating bullish signal. A bullish crossover on MACD indicator is also favoring the bears. Both RSI and CCI indicators are providing bullish signal from a negative territory.

Intraday bias remains bearish on the stock as long as N5.00 level remains intact. The N10.00 level is key resistance level followed by N12.00 while N5.00 can be considered as key support level followed by N4.00 level.

Trade Idea:
Based on the charts and explanation above, traders and investors can buy at N5.99 for the target price of N8.00 and N10.00 level with the stop loss of N5.00 .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 posts N418million loss as revenue slips by 5.48 in Q3 15- 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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