TRANSCORP: Bulls are trying to move out of the oversold territory


Monday, November 9, 2015 08.30 AM / Harish Shahi, The Analyst 

A closer look on the daily chart of TRANSCORP reveals that stock is trading in downtrend where every swing is making successive lower lows and lower highs and heading towards downside and stock is marking new lows on a day to day basis.

Overall, bulls are dominating the bears at every nook and cranny and not providing any chance to the bears. The momentum is totally bearish and bulls are unable to manage their self. Well after arriving at N1.80 level, we are witnessing some counter-attack from the bull’s camp as it has been arrived at an oversold territory.

From technical perspective, we observed that an uptrend line lying on the daily technical chart is providing strength to the bulls. A sustained move above N2.20 will signal further presence of buyers and will provide more strength to the bears; this could trigger acceleration to the upside with N3.20 as next target.


The way bulls are reacting seems that they are approaching the N3.20 level in short term. All odds are in favor of the bulls and indicating a bullish signal.


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



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What Next?

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


Intraday bias remains bearish on the stock as long as N2.20 level remains intact. The N2.80 level is key resistance level followed by N3.20 whereas N1.60 can be considered as key support level followed by N1.40 level.


Trade Idea:

Based on the charts and explanation above, traders and investors can buy at N1.94 for the target price of N2.40 and N2.80 level with the stop loss of N1.60 .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


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 ... Click HERE


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