Trade Idea: Transcorp Plc share price finds support offers potentials for renewed upside rally

The steep recovery in the share market price of Transcorp saw the equity reach 2017 high of N2 in the month of June 2017.

Investors began taking their gains from there on which saw the price of the equity decline to a low of N1.25k testing 50% Fibonacci retracement level at N1.32k and eventually closed above the level with a Doji weekly candle formation. (We would be treating on how to use Fibonacci for high probability trading setup for the Nigerian Equity, FOREX and Commodity at the 2 Day Course visithttp://tiameetup.com/technical-analysis-course/ for more details).

RSI 14 week period retraced from the overbought zone to now trade at 61 while volume remain moderate.

Chart 1 – Weekly Timeframe

For two consecutive weeks, the share price candle formation has formed a Doji candle meaning indecision from the two sides of the market, a confirmation candle is required to determine either resumption in the uptrend has started or the correction continues.

 

Char 2 – Daily timeframe

On the daily timeframe, we see two days of price pickup signaling a possible end of the corrective trend with momentum indicators RSI 14 day period and Stochastic indicators signaling a possible renewed bargaining interest in the stock by the investing community

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Sentiment analysis:

Remain bullish with bargaining interest set to resume upward.