Big move coming in Nepal Investment Bank Ltd.

52 Weeks High :             Rs. 953
52 Weeks Low :              Rs. 355
Last Traded Price :          Rs. 740
Last Week Volume:         9,461



Candlesticks
A black body occurred on Thursday because prices closed lower than they opened.

During the past 10 bars, there have been 5 white candles and 5 black candles.  During the past 50 bars, there have been 20 white candles and 24 black candles for a net of 4 black candles.

Bollinger Bands
On 6/27/2013, Nepal Investment Bank L td. closed below the upper band by 1.1%.  

Bollinger Bands are 68.04% narrower than normal.  The narrow width of the bands suggests low volatility as compared to NIBL's normal range.  Therefore, the probability of volatility increasing with a sharp price move has increased for the near-term.  The bands have been in this narrow range for 17 period(s).  The probability of a significant price move increases the longer the bands remain in this narrow range.   


Relative Strength Index
The current value for the 14 period RSI is 58.7932.

Support: Rs. 716, Rs. 692, Rs. 651, Rs. 610
Resistance: Rs.757, Rs. 774, Rs. 815, Rs. 856

Recommendation
Due to positive divergence  in Relative Strength Index   price of Nepal Investment Bank Ltd has started increasing from Rs. 671. Current Market Price (CMP) is Rs. 740. Bollinger  Bands are narrower than normal. We can aspect a big move in coming days. CMP trading above 60 days moving average and  the Crossover of 22 days moving average by 5 days moving average indicates intermediate  bullish trend.

Based on the chart and Indicators  above, buy this stock at Rs. 710 – Rs.730 with the target of  Rs. 820. Below Rs. 670 would be a danger level for this stock.

Sagun Shakya

Technical Analyst

Opinions expressed  are those of the individual authors and do not necessarily represent the opinion of sharesansar.com This commentary is a guideline to interpreting the specified indicators.  This information should only be used by investors who are aware of the risk inherent in securities trading.  IMS Investment Management Services Pvt. Ltd accepts no liability whatsoever for any loss arising from any use of this contents.