VONO: Stock is showing bullish breakout with ‘V’ shape recovery

Proshare

Monday, January 11, 2016 09.20 AM / Harish Shahi, The Analyst 

A closer look on the daily chart of VONO reveals that earlier stock was falling down and making successive lower lows and lower highs. The bears were driving the car in full control on the accelerator.

The bears were beating the bulls black and blue and dominating them at every nook and corner. Stock declined from N2.00 to N0.60 level but after arriving at N0.60 level we saw some panic reaction from the bulls and they have made a fantastic counter-attack.

A downtrend line was lying on the daily technical chart which was providing strength to the bears as bears were moving down by taking support from a downtrend line.

The good news is that the downtrend line has been breached out with a bullish momentum. The recent buying has added power to the bulls and negates the chance of the bears. Some correction can’t be ruled out but that should again be a time to buy.

From technical perspective, we observed bullish breakout of downtrend line and a ‘V’ shape recovery on the daily technical chart, which is providing bullish signal at an initial level. If it sustains above N1.00, then it will signal further presence of buyers and will 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. Presently stock is trading above all major and minor EMA lines and candles are generating bullish signal. Both investors and traders are displaying 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 ... Click HERE



What Next?
An inverted hammer candlestick followed by hammer candlestick is providing bullish signal. A bullish crossover on MACD indicator is also favoring the bulls. Both RSI and CCI indicators are providing bullish signal from a positive territory.

Intraday bias remains bullish on the stock as long as N0.60 level remains intact. The N1.40 level is key resistance level followed by N2.00 while N0.60 can be considered as key support level followed by N0.40 level.


Trade Idea:
Based on the charts and explanation above, traders and investors can buy at N0.96 for the target price of N1.40 level and N2.00 level with strict stop loss of N0.60 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

VONO sustains recovery pattern gains 22 in 5-day gaining streak - 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 

Last 10 Technical Analyst Reviews You Might Like:

1.       DANGSUGAR: Bloodbath is still going on; just avoid buying

2.      WAPCO: Strong bullish storm has arrived; just buy it

3.      IKEJAHOTEL: The Bulls have started reacting at oversold territory

4.      OKOMUOIL: It’s time to party as the bulls are driving the car                  

5.      LEARNAFRCA: Stock has recorded bullish breakout with high volume

6.      STANBIC: Bulls are in defensive mood as they are dominating

7.      WEMABANK: Bullish storm with three white soldier’s pattern has appeared

8.     TRANSEXPR: Double bottom pattern is at 50% retracement level

9.      NAHCO: Rounding bottom pattern is in the process of formation

10. VITAFOAM: Buying is expected at golden retracement level         

READ MORE:
Related News
SCROLL TO TOP