UBCAP: Valid breakout has been received; Now it’s time to party


Tuesday, September 8 2015 10.20 AM / Harish Shahi, The Analyst 

A closer look on the daily chart UBCAP reveals that earlier stock was making successive lower lows and lower highs and heading towards south side. Well after arriving at N1.14 level bears were unable to manage their self and bulls reacted at the right time. Bulls shown their strength and bounced back to upside; presently bulls are surviving above N1.40 i.e. above all moving averages.

From technical perspective, we can observe that the falling wedge pattern has been formed on daily technical chart which is providing bullish signal. We have received a valid breakout of N1.40 level which opens the way towards the N1.80 and N2.0 level. Well, the recent price action seems that bulls are in revenging mood and are not allowing the bears to move down further.

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 N1.40 will signal further presence of buyers and will provide more strength to the bulls; this could trigger acceleration to the upside with N1.80 as next target.

The way the bulls are reacting seems that they are approaching the N2.00 level in short term. A valid breakout of N1.50 will open the way towards N1.80 and N2.00 level which is key resistance level for the time being.

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 trend reversal signal. Both investors and traders are displaying a 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?

Three white soldier patterns with the formation of three consecutive bullish marabuzo and hammer candlesticks are 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 positive territory.

Intraday bias remains bullish on the stock as long as N1.14 level remains intact. The N1.70 level is key resistance level followed by N1.90 while N1.10 can be considered as key support level followed by N1.00 level.

Trade Idea:
Based on the charts and explanation above, traders and investors can buy at N1.44 level for the target price of N1.80 and N2.00 level with the stop loss of 1.00.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

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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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