TRANSCORP: Bears are checking the depth; bloodbath going on.

Proshare

Wednesday, December 9, 2015 10.30 AM / Harish Shahi, The Analyst 

A closer look on the daily chart of
TRANSCORP reveals that stock is falling down consistently by getting pressure from downtrend line and is making successive lower highs and lower lows. It seems the bears are beating the bulls black and blue and dominating them at every nook and corner. Stock is constantly falling down from N7.00 to N1.50 level which is generating further bearish signal.

The bears are driving the car and they are in full control, they are not ready to settle down for the time being as they are approaching N1.00 level in short term. A sharp sell-off and bloodbath can be seen on the daily chart. Stock is falling down and heading towards south side, there is no hope for the bulls for now as we are waiting for the clear and valid reversal signal.

Presently stock is trading below all major and minor EMA lines and If it sustains below N1.50 level then it will provide further bearish signal and will also provide more strength to the bears; this could trigger acceleration to the downside with N1.00 next target.

All odds are in favor of the bears and indicating a bearish signal. Both investors and traders are displaying bearish tendency towards the stock for the time being, they will get more aggressive once it trades and settles above N1.50 level.



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What Next?
A Bearish marabuzo followed bearish engulfing candlesticks is generating bearish signal for the time being.  A bearish crossover on MACD indicator is also favoring the bears. Both RSI and CCI indicators are providing bearish signal from a negative territory.

Intraday bias remains bearish on the stock as long as N2.00 level remains intact. The N2.50 level is key resistance level followed by N3.00 while N1.00 can be considered as key support level followed by N0.80 level.

Trade Idea:
Based on the charts and explanation above, traders can stay away from this stock for the time being and wait for the clear reversal indication to buy. Traders & investors are advised to buy this stock at N0.70-0.80 level for the target price of N1.50 and N2.00 with tight stop loss of N0.50 level. The tentative time frame would be 10-12 days.

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

Related NEWS
TRANSCORP declares N5.89 billion PAT in Q3 15 result Dips by 28.8 SP N2.12k - Proshare

To View Technical and Interactive Chart with Indicators like MACD, RSI, Stochastic, Moving Average, Bollinger, Williams %R, MFI ... 
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For further details, kindly contact
analyst@proshareng.com


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