Is NMB bank a better opportunity for short term trading? Decide from Technical Analysis of NMB bank.

SHORT-TERM PROSPECTUS:

Bollinger Bands: An upper band & lower band (yellow line) of Bollinger Bands are convergent that means stock is moving towards a low volatile period.Stock had traded around a middle line (green line) of Bollinger bands in last 5-6 days that means there is no definite short-term trend for the stock.

RSI: Relative strength index( RSI) of 14-days period has retraced from over-bought position and now it is fluctuating between 50-60 level that means buyers are more in the game but there is indecisiveness in both buyers and sellers.

Candlestick Pattern: 17^th May candle formed bullish engulfing pattern which supports an uptrend.

EMA: Exponential Moving average (EMA) of longer period of 20-days (red line) is increasing rapidly comparing to EMA of shorter period of 5-days (blue line) that means sellers are trying hard to pull the trend on their side.

Clear cross-over between EMA- 5 and EMA-20 was not observed but both EMAs are below last traded price, which means bulls are still on play. Average volume of last one month has increased comparing to last one year average volume,which shows growing interest of investors. Immediate support level is at Rs 395 and resistance level is at Rs 495.

There is a soft signal for an uptrend but strong signal was not observed, indicators are also signaling for a low volatile periods and most importantly major trend is downward.

 So, if you are thinking about short-term investment in NMB bank, try to find other opportunities.

 LONG TERM PROSPECTUS:

180-days EMA (pink line) is above market price, which means long term trend is downward. 180-days EMA is one of the most celebrated long term trend indicator and acts as a barrier for both uptrend and downtrend.

Stock had lost around 59% of its value from previous high and  has retraced nicely after hitting low of Rs384  on 27^th March 2018, which is  the lowest recorded  price in last two & half years .

So if you are looking for a long term investment in NMB bank, there is an opportunity but wait for three-four months because overall market trend is downward and major support is at Rs 360, So you may get the stock at lower price.

All these predictions are based on Technical analysis, to get the best result combine both technical and fundamental analysis.

Last traded price stands at Rs 465.

Disclaimer:

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.