Wapic: Stock is undergoing a bottom out process

Proshare

Friday, May 29 2015 05.25 AM / Harish Shahi, The Analyst 

A closer look at the daily chart of WAPIC reveals that the stock has declined from N0.85 level to N0.50 level consistently. However, bulls managed to sustain the N0.50 level and we have seen so many range bound sessions. From the last couple of weeks, the stock is trading in that particular territory of N0.50 to N0.55 level and preparing for a big take off. 

A hammer candlestick along with bullish marabuzo candlestick has been formed on the daily technical chart which is indicating purely bullish signal. From long term perspective, we can see that a potential rounding bottom pattern is in process of formation. 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?:

Presently stock is trading above all major and minor EMA lines which is indicating that bulls are in demand. RSI and CCI both are generating bullish signal from positive territory.

A  bullish crossover on MACD indicator is also generating bullish signal. Intraday bias remains bullish on the stock as long as N0.50 level remains intact. The N0.65 level is a key resistance level followed by N0.75 whereas N0.50 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 go for BUY at N0.55 level and book profit at N0.65 and N0.75; with the stop-loss of N0.50.

Related NEWS

WAPIC Records 14 Decline in PBT in Q1 15 to Close at N180m as OPEX Increases

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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