ZENITHBANK: Bears are on the driver’s seat; stay away for the time being

Proshare

Wednesday, December 9, 2015 09.30 AM / Harish Shahi, The Analyst 
 

A closer look on the daily chart of ZENITHBANK reveals that stock is falling down consistently due to pressure from downtrend line and is making successive lower highs and lower lows. It seems the bears are beating the bulls black and blue and dominating them at every nook and corner. Stock is constantly falling down from N25.50 to N14.00 level which is generating further bearish signal.
 

The bears are driving the car and they are in full control, they are not ready to settle down for the time being and they are approaching N12.00 and N10.00 level in short term. A sharp sell-off and blood bath can be seen on the daily chart.
 

After arriving at an oversold territory of N14.00 level, we saw panic reaction where the bulls refused to move down further and a counter-attack appeared but that was also limited to N19.00 level and again stock slipped down towards south side.
 

Presently, stock is trading below all major and minor EMA lines and if it sustains below N14.00 level then it will provide further bearish signal. It will provide more strength to the bears; this could trigger acceleration to the downside with N10.00 as next target.
 

All odds are in favor of the bears and indicating a bearish signal. Both investors and traders are displaying bearish tendency towards the stock for the time being, they will get more aggressive once it trades and settles above N14.00 level.
 



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

 

 

What Next?
A bearish marabuzo followed by bearish engulfing candlesticks is generating bearish signal for the time being.  A bearish crossover on MACD indicator is also favoring the bears. Both RSI and CCI indicators are providing bearish signal from a negative territory.  

 

Intraday bias remains bearish on the stock as long as N18.00 level remains intact. The N18.00 level is key resistance level followed by N20.00 whereas N12.00 can be considered as key support level followed by N10.00 level.
 

Trade Idea:
Based on the charts and explanation above, traders can stay away from this stock for the time being and wait for the clear reversal indication to buy. Traders & investors are advised to buy this stock at N10.00 level for the target price of N14.00 and N18.00 with tight stop loss of N8.00 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

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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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