PZ: Fantastic breakout for buyers, don’t miss this opportunity

Proshare

Friday, August 07 2015, 09.42 AM / Harish Shahi, The Analyst 

 


A closer look on the daily chart of PZ reveals earlier that stock was making successive lower lows and lower highs and heading towards downside. Overall, the bears were ruling and dominating the bulls at every stage.


They started their journey from N35 to N27 level. The manner the bears were falling down on a strict note made a falling wedge price pattern as we can see on the daily technical chart but the gap between the lines was shrinking which was the first signal that the sell-off is for a limited time.


This week, the bulls gave us a valid breakout with strong confirmation and indicating further bullish signal. There may be a lot of demand in the market and N27 continued to be a very strong support level.


The short term trend is down according to the daily swing chart, but momentum appears to be on favour of the upside. A sustained move above N34 will signal the presence of buyers and will provide more strength to the bulls; this could trigger acceleration to the upside with N38 and N40 as next target price.  Well, all odds are in favor of the bulls right now and indicating a bullish signal.


Presently, stock is trading above all major and minor EMA lines and candles are totally generating bullish signal. Both investors and traders are displaying bullish tendency towards the stock for the time being.


Well it’s just a start, we will get further bullish signal once stock trades and settles above N34 level. The way bulls are reacting appears that they are approaching the N38 level.

 




 

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



What Next?

A dragonfly doji followed by bullish marabuzo candlesticks are providing bullish signal. Both RSI and CCI indicators are providing bullish signal from positive territory.

A bullish crossover on the MACD indicator is also favoring the bulls. Intraday bias remains bullish on the stock as long as N27 level remains intact. The N34 level is key resistance level followed by N38 whereas N27 can be considered as key support level followed by N25 level.


Trade Idea:

Based on the charts and explanation above, traders and investors can buy at N33 level for the target price of N36 and N38 level with the stop loss of N30 level.  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 charges   


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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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