VONO: A small correction is awaited, for buying opportunity


Friday, June 5 2015 02.15 AM / Harish Shahi, The Analyst 

A closer look on the daily chart of
VONO reveals successively higher highs and higher lows where stock is heading in purely uptrend. One can see the real face of bulls in the bullish storm as we can see that stock has arrived from N1 to N2 level in just few days which means bulls are in aggressive mood.

After a massive rally, we are now expecting some retracement/correction from N1.60 to N1.40 level. The mentioned levels are very strong support level for the time being so one can buy at these levels. This is a second opportunity to buy once again for those who have missed earlier. 

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What Next?:

The bulls are dominating the bears at every level and heading towards north side. Short term to intermediate term trend is up so in an uptrend market always buy on dips.  Investors and traders are displaying bullish tendency towards the stock for the time being.

A dark cloud candlestick along with shooting star candlesticks have been posted on daily technical chart which are generating a bid bearish signal and it may come down. The stock is trading above all major and minor EMA lines which are indicating bulls are in demand and taking the charge.

Both RSI and CCI are generating some kind of signal of retracement from overbought territory.  A bullish crossover on MACD indicator is also generating bullish signal. Intraday bias remains bullish on the stock as long as N1.0 level remains intact. The N2.20 level is key resistance level followed by N2.40 whereas N1.0 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 go for a BUY at N1.60 level and book profit at N1.90 and N2.20; with the stop-loss of N1.30.

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

Related NEWS
VONO Merger talks boost market value by 78.89 in just 8days

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