UBN: Rounding Bottom Pattern Is In the Last Phase of Completion


Thursday, August 13 2015 08.35 AM / Harish Shahi, The Analyst 

A closer look on the daily chart of
UBN reveals that a rounding bottom price pattern is in the last phase of completion where bears are heading towards south side and controlling the game for the time being. The way stock is falling down seems that current sell-off is limited to N6.51. The daily candlesticks are making successive lower lows and lower highs and trading downtrend.

The bears had taken charge from N12.00 level to N7.00 level and approaching the N6.50 level which is a strong key support level. There may be a lot of demand in the market and N6.50 continued to be a very strong support.

The short term trend is down according to the daily swing chart and momentum appears to be in favour of the upside. A sustained move above N8.00 will signal the presence of buyers and will provide more strength to the bulls; this could trigger acceleration to the upside with N10.00 as next target. 

All odds are in in favor of the bulls and indicating a neutral to bullish signal. Presently, stock is trading between the crossed major and minor EMA lines and candles are generating reversal signal. Both investors and traders are displaying the 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
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What Next?

A bullish marabuzo followed by engulfing bullish candlesticks are providing trend reversal signal and some accumulation is possible with good risk and reward ratio. Both RSI and CCI indicators have reached a positive territory and generating neutral to bullish signal.

Intraday bias remains bullish on the stock as long as N6.0 level remains intact. The N9.00 level is key resistance level followed by N11.00 whereas N6.00 can be considered as key support level followed by N5.00 level.



Trade Idea:
Based on the charts and explanation above, traders and investors can buy at N6.50-7.00 level for the target price of N9.00 and N11.00 level with the stop loss of N5.50 level.  The tentative time frame would be 8-10 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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