STERLNBANK: Bulls made the counter-attack on the bears.

Proshare

Thursday, July 2 2015 09.30 AM / Harish Shahi, The Analyst 

A closer look on the daily chart of STERLNBANK reveals that earlier stock was making successively lower lows and lower highs and tested the depth of the feet. Well, from starting of the journey from N3 level bears were controlling the ride and they did not lost their grip from the market and took it to the N1.90 level.

Yesterday, the bulls show some remonstration aggressively and denied to move down further; due to which we have seen an aggressive move on the daily technical chart with the form of bullish marabuzo candlestick where only bulls are there and that’s a clear message that no more bearish sentiments.

A downtrend line still exists on the daily technical chart and stock is still trading below that level so we will get a clear bullish sentiment once stock gives valid breakout of this mentioned line i.e. above N2.20 level.

Short term to intermediate trend is down and stock is trading below all major and minor EMA lines, so in that case we can buy at reversal signal as it’s time to buy the stock.  Investors and traders are displaying bearish 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?

Few consecutive reversal candlesticks like hammer, inverted hammer and a big bullish marabuzo candles have posted on the daily technical chart which is a clear sign of bottom out process.

Well this is an early buy call we will get further bullish confirmation once stock trades and settles above N2.20 level.

Both RSI and CCI are generating trend reversal signal from extreme oversold territory. Intraday bias remains bullish on the stock as long as N1.80 level remains intact. The N2.20 level is key resistance level followed by N2.50 whereas N1.80 can be considered as key support level followed by N1.60 level.

Trade Idea:

Based on the charts and explanation above, traders and investors can go for a buy above N2.10 for the target of N2.30 and N2.50 level with the stop loss of N1.80. The tentative time frame would be 5-7 days.

NB: Return on Investment based on trade idea above does not take cognizance of brokerage commission charges


Related NEWS

 

 

 

 

 

 

 

 

STERLNBANK at cross-road for fresh breadth as pressure wanes- 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


Last 10 Technical Analyst Reviews You Might Like:

1.    NAHCO: Bears are driving the car

2.    VONO: Has the stock bottomed out?

3.    SKYEBANK: A cold war between bulls and bears

4.    STANBIC: Bulls are lost somewhere while the bears are dominating

5.    NPFMCRFBK: Stock Arrives at Golden Retracement level

6.    NESTLE: Bulls may be the whistle blower

7.    UBN: A rounding top pattern is in process of formation

8.    TRANSCORP: Stock has bottomed out supported by a Double bottom pattern

9.    FBNH: Bears are dominating the bulls and controlling the game

10. NEM: Bears are driving the car and heading towards south side

 

READ MORE:
Related News
SCROLL TO TOP