UACN: Buying is on the cards as rounding top pattern has been completed.


Friday, September 18 2015 09.10 AM / Harish Shahi, The Analyst 

A closer look on the daily UACN chart reveals that earlier stock was making successive lower lows and lower highs and heading towards south side. The short term trend is down and bears are dominating the bulls at every nooks and crannies. The swing has arrived at N30 level which is a key support level as stock has received demand from this level earlier also.

After arriving at N30 level, we have seen some trend reversal signal and stock has reached N33 level, well this is an early buy signal. We will get further bullish confirmation once stock trades and settles above N36 level. From technical perspective, we observed that stock has bottomed out and rounding bottom pattern has been completed.

The short term trend is down according to the daily swing chart and momentum appears to be in favour of an upside. A sustained move above N38.00 will signal further presence of buyers and will provide more strength to the bulls; this could trigger acceleration to the upside with N40 as next target.

The way bulls are reacting seems that they are approaching the N42 level in short term. All odds are in favor of the bulls and indicating the bullish signal.

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

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What Next?
A hammer candlestick in followed by a bullish marabuzo candlestick is generating bullish signal.  A bullish crossover on MACD indicator is also favoring the bulls. Both RSI and CCI indicators are providing bullish signal from a negative territory. 

Intraday bias remains bullish on the stock as long as N31.00 level remains intact. The N38 level is key resistance level followed by N42 whereas N30 can be considered as key support level followed by N28 level.


Trade Idea:
Based on the charts and explanation above, traders and investors can buy at N33 level for the target of N36 and N38 level with the stop loss of N30 .The tentative time frame would be 6-10 days.

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


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