UBCAP: Rounding top pattern has been completed

Proshare

Monday, November 2, 2015 08.50 AM / Harish Shahi, The Analyst 

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

Overall, bears were dominating the bulls at every nook and cranny and not providing any chance to the bulls. The momentum was totally bearish and bulls were unable to manage their self.

Stock declined from N1.81 to N1.14 level in short term but after arriving at N1.14 level, we saw some buying in the camp as stock has arrived an oversold territory and it has bottomed out.

From technical perspective, we observed the completion of rounding top pattern on the daily technical chart which is providing strength to the bulls. Well, this is an early signal; we will get further bullish confirmation above N1.50 level.

A sustained move above N1.40 will signal further presence of buyers and will provide more strength to the bears; this could trigger acceleration to the upside with N2.00 as next target.

The way bulls are reacting seems that they are approaching the N2.00 level in short term. All odds are in favor of the bulls and indicating a bullish signal.

 

Presently, stock is trading above all major and minor EMA lines and candles are generating bullish signal. Both investors and traders are displaying the bullish 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?

A piercing pattern candlestick followed by dragonfly doji 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 N1.00 level remains intact. The N
1.60 level is key resistance level followed by N2.00 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 and investors can buy at N1.32 for the target price of N1.80 and N2.00 level with the stop loss of N1.00 .The tentative time frame would be 8-10 days.


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

 


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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 

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