Zenith Bank Plc: Good time to accumulate

Proshare

Wednesday, May 13, 2015 06.05 AM / Harish Shahi, TheAnalyst

Taking a cursory review into the daily
technical chart of Zenith Bank, we observed that the stock is trading in an uptrend and we have witnessed a 50% retracement level. Presently, the stock is trading between the crossed moving averages and the chances of bullish sentiments gaining momentum are high. A closer look at the daily technical chart reveals that the short term to intermediate trend is UP and in an uptrend market; it is advisable to always sit at the BUY side.

Well this is an early buy call but we will get strong bullish confirmation above N21.60 level. Investors and traders are displaying a measure of bullish sentiments towards the stock as we can see that a bullish marabuzo candlestick followed by a hammer candlestick which are generating bullish signal on the daily chart. Intraday bias remains bullish on the stock as long as N20 level remains intact.



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


Daily Chart with MACD,RSI and CCI


What Next?:

After a steep upward move, a small correction was expected and we think that it has been over now and it’s time to accumulate the stock as it has started to receive demand/buying from here.

RSI and CCI are both providing us with a bullish signal from oversold territory and a bullish crossover on the MACD indicator is equally affirming a bullish signal. 

Trade Idea:

Based on the charts and explanation above, traders and investors can go for BUY between N21.50 - N21.20 level and book profit at N24 and N26; with the stop-loss of N18.90

NB: Return on Investment does not take cognizance of brokerage commission charges

Related NEWS

Analyst gives a BUY Rating on Zenith Bank Plc on Q1 2015 Results

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

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