STANBIC: The probability of double bottom pattern is very high


Tuesday, July 14 2015 08.35 AM / Harish Shahi, The Analyst 


A closer look on the daily chart of STANBIC reveals that a balanced demand and supply is going on and stock was in completing the rounding top price pattern, which has completed just now and from here we are expecting that bulls will take the charge and it may bounce from here with the formation of double bottom price pattern.


The probability of double bottom price pattern is very high and it seems that bulls have taken the charge as we can see a big bullish marabuzo candlestick has been posted already on the daily technical chart. However, it’s an early buy call, we will get further bullish confirmation once stock trades and settles above N28 level i.e. above all major and minor EMA lines.


Investors and traders are displaying some trend reversal tendency towards the stock for the time being.  Presently stock is trading below all major and minor EMA lines which is generating bearish signal but on the opposite side candles are unable to give further bearish signal as stock is in trend reversal phase.

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 candlestick along with an inside bar candlesticks are generating totally bullish signal and we may see further bullish momentum. A bullish crossover on MACD indicator is the recent development and favoring the bears.

Both RSI and CCI are providing further bullish signal from oversold territory.  Intraday bias remains bullish on the stock as long as N22 level remains intact. The N29 level is key resistance level followed by N32 whereas N21 can be considered as key support level followed by N19 level.


Trade Idea:
Based on the charts and explanation above, traders and investors can buy at the current market price i.e 24.95 for the target price of N30 and N35 with the stop loss of N20 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

Related NEWS

STANBIC declares 90kobo Interim Dividend in Q2 15 result SP N24.75k - Proshare 


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

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