OKOMUOIL: Tug of war going on between the bulls and the bears


Monday, December 7, 2015 08.30 AM / Harish Shahi, The Analyst 

A closer look on the daily chart of OKOMUOIL reveals earlier stock was falling down by taking support of downtrend line and was making successive lower highs and lower lows. It seems like bears were beating the bulls black and blue and dominating them at every nook and corner.

Stock has declined from N35.00 to N18.50 with a sharp sell-off but after arriving at the oversold territory we saw some recovery and it bounced back to N40.00 level, but it could not sustain at that level and slipped to N26.00 level.

After arriving at N26.00 level we observed tug of war between the bulls and the bears as both are unable to move on either side. We observed bullish breakout of the consolidation phase.  From technical perspective, we observed that it bounced from the 50% Fibonacci level of N18.00 to N40.00 on the daily technical chart and is providing bullish signal.

Overall, stock is trading into minor uptrend and sustaining above all major and minor EMA lines. If it sustains above N30.00 level then it will signal further presence of buyers and will provide more strength to the bulls; this could trigger acceleration to the upside with N40.00 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. They will get more aggressive once it trades and settles above N30.00 level.

To View Technical and Interactive Chart with Indicators like MACD, RSI, Stochastic, Moving Average, Bollinger, Williams %R, MFI ... Click HERE

What Next?
A bullish marabuzo candlesticks followed by bullish engulfing candlestick is generating further bullish signal. A bullish crossover on MACD indicator is also favoring the bulls. Both RSI and CCI indicators are providing bullish signal from a negative territory.

Intraday bias remains bullish on the stock as long as N25.00 level remains intact. The N35.00 level is key resistance level followed by N40.00 while N25.00 can be considered as key support level followed by N20.00 level.

Trade Idea:
Based on the charts and explanation above, traders can buy above N30.00 for the target price of N35.00 and N40.00 with the strict stop loss of N25.00. 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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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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