UBCAP: Stock has bottomed out just grab it

Proshare

Friday, June 5 2015 03.35 AM / Harish Shahi, The Analyst 

A closer look on the daily chart of UBCAP reveals many whipsaws as the stock price fluctuates. Well being a trader we have to grab the opportunity when stock is at downside to buy the stock. So, this is right time to buy the stock as it has bottomed out.

From technical, prospective triple bottom pattern is in process of formation which is indicating that bulls will approach the N1.70 level. Short term to intermediate term trend is range bound so in a range bound market buy at bottom side and sell on high side.

Investors and traders are displaying 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 hammer candlestick has been posted on daily chart which indicates that bears tried to took it at downside but after testing the N1.35 level they could not sustain and bounced back from there. The stock is trading above all major and minor EMA lines which is generating bullish signal.


A bullish divergence can be seen on the CCI indicators which is the leading indicator for bullish sentiments. Both RSI and CCI are generating bullish signal from oversold territory. A bullish crossover on MACD indicator is also generating bullish signal. Intraday bias remains bullish on the stock as long as N1.30 level remains intact. The N1.70 level is key resistance level followed by N1.90 whereas N1.10 can be considered as key support level followed by N0.90 level.

Trade Idea:
Based on the charts and explanation above, traders and investors can go for a BUY at N1.44 level and book profit at N1.70 and N1.90; with the stop-loss of N1.30. 

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

Related NEWS
UBCAP Perfect time to buy


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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