UNITYBNK: The Bulls come out from the consolidation phase


Thursday, October 8 2015 09.40 AM / Harish Shahi, The Analyst 

A closer look on the daily chart of UNITYBNK reveals that earlier stock was making successive lower lows and lower highs and heading towards south side. Overall, the bulls and the bears were trading into a consolidation phase where both the bulls and the bears were fighting with each other and unable to move on either side.

It was trading in the downtrend with a range bound territory.  It declined from N5.00 to N1.20 level in short term and convinced all the bears to make the downtrend. Well by looking at the chart below, we observed that the bears were dominating the bulls at every nooks and crannies and trading below all major and minor EMA lines.

From technical perspective, we observed that a rounding bottom pattern is in the process of formation on the daily technical chart and is providing strength to the bulls.

The short term trend is down according to the daily swing chart and momentum appears to be in favour of an upside. A sustained move above N2.00 will signal further presence of buyers and will provide more strength to the bulls; this could trigger acceleration to the upside with N4.00 as next target.

The way bulls are reacting seems that they are approaching the N4.00 level in short term. All odds are in favor of bulls and indicating the bullish signal.

Presently, stock is trading above all major and minor EMA lines and candles are generating bullish 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?

Three consecutive bullish marabuzo in the form of three white soldier patterns are generating bullish signal. 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 N1.00 level remains intact. The N3.00 level is key resistance level followed by N4.00 whereas N1.00 can be considered as key support level followed by N0.80 level.

Trade Idea:
Based on the charts and explanation above, traders and investors can buy at N1.54 level for the target of N2.50 and N3.50 level with the stop loss of N1.20 .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

Related NEWS


UNITYBNK Declares N7.89 billion PAT in Q2 15 Result SP N2.24k- 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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