UBN: Eventually bullish breakout is seen after a long tug of war



Thursday, December 17, 2015 10.30 AM / Harish Shahi, The Analyst 

A closer look on the daily chart of UBN reveals that stock was falling down consistently by getting supply pressure from the downtrend line and was making successive lower highs and lower lows but after arriving at N5.50-N6.00 level, stock entered into a consolidation phase where both the bulls and the bears were struggling to move on either side and was unable to provide any direction to trade.

Earlier, it seems the bears are beating the bulls black and blue and dominating them at every nook and corner. Stock was constantly falling down from N11.50 to N5.25 level but after arriving at an oversold territory, the bears could not manage their self and we have seen tug of war between the bulls and the bears.

It seems like both are fighting with each other on who takes the advantage but no one is succeed eventually. Yesterday we saw that the bulls came out from the range bound territory with full bullish volume. Well it’s an early buy signal but we will get further bullish confirmation above N6.00 level, if it trades and settles above N6.00 level, then we will receive further bullish signal.

Presently stock is trading above all major and minor EMA lines and providing further bullish signal. It will provide further presence of the bulls above N6.00 level and will provide more strength; this could trigger acceleration to the upside with N10.00 as next target.

All odds are in favor of the bulls and indicating a bullish signal. Both investors and traders are displaying the bullish tendency towards the stock for the time.

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What Next?
A bullish engulfing candlestick followed by a bullish marabuzo candlestick pattern is generating bullish signal for the time being. A bullish crossover on MACD indicator is also favoring the bulls. Both RSI and CCI indicators are providing bullish signal from a negative territory.

Intraday bias remains bullish on the stock as long as N5.00 level remains intact. The N8.00 level is key resistance level followed by N10.00 while N5.00 can be considered as key support level followed by N4.00 level.

Trade Idea:

Based on the charts and explanation above, traders can buy this stock at N5.99 level for the target price of N8.00 and N10.00 with tight stop loss of N4.50 level. The tentative time frame would be 6-8 days.

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

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For further details, kindly contact analyst@proshareng.com 

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