ZENITHBANK: Time to accumulate the stock

Proshare

Monday, August 3 2015 08.30 AM / Harish Shahi, The Analyst 


A closer look on the daily chart of
ZENITHBANK reveals the stock is falling down and marking successive lower lows and lower highs on daily basis. A blood bath is going on where only bears are leading and dominating the bulls at every nooks and crannies.


From long term perspective, a downtrend line is also lying on the daily technical chart which is providing bearish signal. The way stock is falling down suggests that buyers don’t have any interest in the stock.


Stock is falling down from N25.51 level and arrived at N16. All odds are in favor of the bears but we can see that the present territory has many support levels so from here it may bounce. For traders and investors we would suggest that they may accumulate from here and once they find any positive signal then may add the quantity.


Presently, stock is trading below all major and minor EMA lines and favoring the bears. Well, all odds are in favor of the bears and generating bearish signal. Both investors and traders are displaying bearish tendency towards the stock for the time being. The way price action is going on seems that further sell off is limited and get ready for the buying opportunity on the first reversal signal.



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

 
What Next?
Recent candle on daily technical chart is three black crow price pattern has been posted and providing us bearish signal. Both RSI and CCI indicators have reached an oversold territory so some trend reversal signals are expected at any time. 

Intraday bias remains bearish on the stock as long as N20 level remains intact. The N15 level is key resistance level followed by N13 whereas N22 can be considered as key support level followed by N24 level.

Trade Idea:
Based on the charts and explanation above, traders and investors can just accumulate the stock in small quantity and once they find any reversal signal then add the quantity. Once stock comes at 15.50-15.0 level then for it for the target of N18 and N20 level with the stop loss of N14 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   

 

 


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ZENITHBANK Blood bath seen with bearish momentum - 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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