VONO: Symmetrical triangle is in the process of formation


Thursday, August 13 2015 08.30 AM / Harish Shahi, The Analyst 


A closer look on the daily chart of VONO reveals that whipsaws are moving on both side and the swings are making lower highs and higher lows and two consecutive lines are laying on the chart a downtrend line along with an uptrend line.

The bears had taken charge from N2.00 level to N1.00 level which is a strong key support level. The way swings are forming on the daily technical chart suggests that a symmetrical triangle price pattern has been formed and generating neutral signal.

Well, for traders we would suggest that they sit aside and wait for the clear breakout. A valid breakout of N1.40 level will open the way towards the N2.00 level in short term.

There may be a lot of demand in the market and N1.00 continued to be a very strong support level. The short term trend is down according to the daily swing chart, and momentum appears to be in favour of the upside. A sustained move above N1.40 will signal the 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 the neutral signal. Presently, stock is trading between the crossed major and minor EMA lines and candles are generating reversal signal. Both investors and traders are displaying the neutral tendency towards the stock for the time being.

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What Next?

A dragonfly doji and two consecutive morning star candlesticks are providing trend reversal signal. Both RSI and CCI indicators have reached a positive territory and generating neutral to bullish signal.

Intraday bias remains bullish on the stock as long as N0.80 level remains intact. The N
1.60 level is key resistance level followed by N2.0 whereas N0.80 can be considered as key support level followed by N0.60 level.

Trade Idea:
Based on the charts and explanation above, traders and investors can buy at N1.08 level for the target price of N1.60 and N2.00 level with the stop loss of N0.80 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 charges   

Related NEWS

VONO declares N37.4 million loss in Q3 15 results SP N1.13k - 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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