ZENITHBANK: Blood bath seen with bearish momentum

Proshare

Monday, July 13 2015 09.30 AM / Harish Shahi, The Analyst 

 

A closer look on the daily chart of ZENITHBANK reveals that stock is making successive lower lows and lower highs and heading towards downside. A massive blood bath can be seen in the stock with totally bearish momentum. After marking the high of N25.50 level, bulls could not sustain at that level and tumbled down to N19 level consistently.

 

Bulls could not manage their self and bears are dominating the bulls at every level and putting it further downside. The moving average support was the last hope for bulls but bears breached that level and sustaining below that level which means that further bearish sentiments are on the cards. The way bears are reacting it seems that they are approaching the N16-15 level.

 

Short terms to intermediate trend is down and in an downtrend  market always wait for the stock to bottom out, once stock gives us reversal signal at key support level of N15 or N16 level, then we may initiate our buy position.  Investors and traders are displaying bearish tendency towards the stock for the time being.  Presently, stock is trading below major and minor EMA lines which is generating further bearish signal.



To View Technical and Interactive Chart with Indicators like MACD, RSI, Stochastic, Moving Average, Bollinger, Williams %R, MFI ... Click HERE


 

 

 

What Next?

A bearish engulfing pattern along with dark cloud candlesticks are generating totally bearish signal and we may see further bearish momentum.  Both RSI and CCI are providing further bearish signal from negative territory.  Intraday bias remains bullish on the stock as long as N20 level remains intact. The N22 level is key resistance level followed by N24 whereas N16 can be considered as key support level followed by N14 level.

 

Trade Idea:

Based on the charts and explanation above, traders and investors can lets the stock decline first and then once it comes down to N16 level then they can go for a buy at N16-15 level at the target price of N20 and N23 with the stop loss of N13 level.

The tentative time frame would be 10-12 days.

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


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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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