Tuesday, November 3, 2015 09.00 AM / Harish Shahi, The Analyst
A closer look on the daily chart of VONO reveals that stock is trading in pure downtrend where every swing is making successive lower lows and lower highs and heading towards downside and stock is marking new lows on a day to day basis.
Overall, bears are dominating the bulls at every nook and cranny and not providing any chance to the bulls. The momentum is totally bearish and bulls are unable to manage their self.
It declined from N2.00 to N0.75 level in short term but after arriving at N0.75 level we saw some range bound sessions and finally it made up as a consolidation phase.
From technical perspective, we observed that a rounding bottom pattern on the daily technical chart is providing strength to the bulls. Well, this is an early signal; we will get further bullish confirmation above N1.20 level.
A sustained move above N1.20 will signal further presence of buyers and will provide more strength to the bears; this could trigger acceleration to the upside with N2.00 next target.
The way the bulls are reacting seems that they are approaching the N2.00 level in short term. 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 a bullish tendency towards the stock for the time being.
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An inside bar candlestick followed by rickshaw man doji candlestick is generating bullish signal. A bullish crossover on MACD indicator is also favoring the bears. Both RSI and CCI indicators are providing bullish signal from a negative territory.
Intraday bias remains bearish on the stock as long as N0.80 level remains intact. The N1.40 level is key resistance level followed by N2.00 while N0.70 can be considered as key support level followed by N0.50 level.
Based on the charts and explanation above, traders and investors can buy at N0.92 for the target price of N1.60 and N2.00 level with the stop loss of N0.80 .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
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
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