UBN: A rounding top pattern is in process of formation.



Friday, June 26 2015 03.40 AM / Harish Shahi, The Analyst 

A closer look at the daily chart of UBN reveals that a balanced demand and supply is going on and bears are dominating the bulls at every nook and corner; in short they are not giving any change to stabilize the bulls. Stock is making successively lower lows and lower highs and heading towards the south side. Bears crossed all the major and minor EMA lines and trading below these lines. 

After arriving at N11.50 level it topped out and started to decline and arrived at N9.25 level. Bears have given the clear breakout of an uptrend line which is the recent development and with the way bears are reacting it seems that they are approaching the N8.00 level in the short term. Short term to intermediate trend is down so in a downtrend market always wait for the next support level to buy it.  Investors and traders are displaying bearish 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 bearish engulfing candlestick with combination of bearish marabuzo candlestick have been posted on the daily chart which signals that bears are still in the demand and they are controlling the game for the time being, so traders are advised to wait for the next support level.

RSI and CCI both have arrived an extreme oversold territory so we may see some trend reversal signal.  The crossover on MACD indicator is still bearish and favoring the bears. Intraday bias remains bearish on the stock as long as N10.50 level remains intact. The N10.50 level is key resistance level followed by N11.50 whereas N8.50 can be considered as key support level followed by N8.00 level.

Trade Idea:
Based on the charts and explanation above, traders and investors should have patience for the time being and let the stock decline first; once it reaches a N8.00 level, then initiate your buy position for the target of N9.50 and N11.00 level, with the stop loss of N6.00. The tentative time frame would be 12-15 days.

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

Related NEWS

UBN declares N2.27billion PAT in Q1 15 result SP N10.75k

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 

Last 10 Technical Analyst Reviews You Might Like: 

1.    FBNH: Bears are dominating the bulls and controlling the game

2.    NEM: Bears are driving the car and heading towards south side

3.    AIICO: A strong counter attack from bull's campaign

4.    NEIMETH: Bulls are displaying full aggression

5.    MAYBAKER: Stock Has Bottomed Out; No More Bearish Sentiments.

6.    WAPCO:  Bulls are on the rocks

7.     CONTINSURE:  Bulls are making the base for next fly

8.    HONYFLOUR:  Bulls have become the sky rocket

9.    GUINNESS:  Bulls are on the rocks, just grab it

10.  ACCESS: Bulls may break the silence mode


Related News