UNITYBNK: Bulls are snatching the bite from the bear’s mouth

Proshare

Friday, December 18, 2015 08.50 AM / Harish Shahi, The Analyst 

A closer look on the daily chart of
UNITYBNK reveals that earlier stock was falling down consistently by getting pressure from the downtrend line and was making successive lower highs and lower lows.

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 N3.00 to N0.50 level but after arriving at an oversold territory. The bears could not manage their self and we saw some reversal signals.

It seems the bears are unable to move further downside as it has reached an oversold territory and the bulls snatched the bite from the bear’s mouth. Well stock is trading at an extreme oversold i.e. negative territory so better to accumulate it at the dips. The reversal candlesticks are just an initial buy signal we will get further bullish signal above N1.00 level.

Presently stock is trading below all major and minor EMA lines and providing further neutral to bullish signal. Above N1.00 level, it will provide further presence of the bulls and will also provide more strength to the bulls; this could trigger acceleration to the upside with N2.00 as next target.

All odds are in favor of the bulls and indicating a bullish signal. Both investors and traders are displaying bullish tendency towards the stock for the time. A valid breakout of N2.00 level will open the way towards N2.50 and N3.00 level in short term.


 

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What Next?
A hammer 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 N0.50 level remains intact. The N1.50 level is key resistance level followed by N2.00 while N0.50 can be considered as key support level followed by N0.40.

Trade Idea:
Based on the charts and explanation above, traders can buy this stock at N0.70 level for the target price of N1.50 and N2.00 with tight stop loss of N0.50 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

Related NEWS

UNITYBNK Declares N9.31 billion PAT in Q3 15 Result SP N1.36k - Proshare

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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