Technical Analysis of Grameen2 on 31 Dec 2016

Technical Analysis of Grameen2 on 31 Dec 2016

This is no buy/sell recommendation - just a trial to see if Technical Analysis (works to an extent) in Dhaka Stock Exchange.

It is becoming difficult to find stocks at low price in this Bull market. However, the bull market will lead to increase in earnings of quite a few Mutual Funds. One such could be Grameen2.

Fundamental (NAV Analysis): Last two years, it has given Cash Dividend (positive) and RIU (which I don’t like). It’s NAV and EPU is good – it has the ability to give 10% Cash Dividend annually.

	2012	2013	2014	2015	2016
Profit	142	214	211	185	175
NAV	15.20	16.75	16.84*	19.52	17.40
EPU				1.09	1.03
Dividend	6.5%	10%	15% RIU	15% RIU + 10%	9% RIU + 10%

Now to the Technicals:

Last year, it created strong support at 9.6 before going to hit 12. This year, after declaration, when it bounced back from 9.7, I got interested.

Now, it is trying to break Resistance at 12.5 (it has already taken one bite at the cherry). If it does so, then next Supply zone is at 15-16. It might offer good returns for the break out trader (risk-taker), if one has not positioned earlier.

With supply in the market, it might give an opportunity to buy around 12.

Stop loss would be 11.7 – that is, sell if it goes below 11.7.

Let us see what happens . . .