UBN: Let’s buy the stock, the rounding top pattern is complete…


Friday, July 17 2015 02.30 AM / Harish Shahi, The Analyst 


A closer look at the daily chart of UBN reveals that the stock is witnessing a balanced demand and supply slope towards downside i.e. a rounding top pattern has been completed where bears are dominating the bulls at every nook and corner. Presently stock has arrived at N8.04 level which is a key support level.


Earlier it was making successively higher highs and higher low and trading above major and minor EMA lines but suddenly after arriving at N11.70 level it started to decline. Bears took the price below the moving average and snatched the bite from the bull’s mouth. The bears converted whole bullish sentiments into bearish sentiments.


From a technical point of view, the stock is forming a snake shape. This implies that it has started rising with a formation of a rounding bottom pattern and started to decline in the shape of rounding top pattern and right now arrived at the same level from where it has started the journey of the rounding bottom.  Overall odds are in favor of bulls as stock has shown some counter moves.


Investors and traders are displaying bullish tendency towards the stock for the time being. Presently stock is trading below all major and minor EMA lines but the price action in not in the favor of bears which is generating bullish signal

To View Technical and Interactive Chart with Indicators like MACD, RSI, Stochastic, Moving Average, Bollinger, Williams %R, MFI ... Click HERE

What Next?
A bullish engulfing candlestick in the shape of bullish marabuzo candlesticks pattern has formed on the daily technical chart which is generating further bullish signal. Well, this is an early buy call we will receive further bullish signal once stock trades and settles above N9 level. RSI and CCI both are providing trend reversal signal from negative territory.  Intraday bias remains bullish on the stock as long as N7 level remains intact. The N10 level is a key resistance level followed by N12, whereas N7 can be considered as key support level followed by N5 level.


Trade Idea:
Based on the charts and explanation above, traders and investors can buy at current market price i.e. N8.37 for the target of N9.50 and N11.50 with the stop loss of N7 level. 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 charges


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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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