Technical Analysis of EBL on 6 Feb 2017

Technical Analysis of EBL on 6 Feb 2017

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

I like EBL’s services. I think it’s a good bank.

Fundamentals: It has good absolute profits and EPS and has given at least 20% Cash Dividends from 2012. Current PE ~ 8.

	2012	2013	2014	2015
Profit	2,393	2,535	2,139	2,279
EPS	3.92	4.15	3.50	3.73
Dividend	20%C	20%C	20%C	20%C + 15%B
NOCFPS	-4	21	-20	15

Only draw-back might be its lack of growth.

Now to the Technicals: Technically, ideal buy price is around 25-26.

It had a run from ~28-36 recently. After reaching High of 35.9, EBL is also retracing (as the heated market melts at last :-).

Now, it is declining on low volume. If it can reverse from a Fibo level on High Volume – then we might get another Bull Run from it.

I am expecting it to reverse from around 31 to 32 (stop loss at 29.7). *(Note: TA is not a Science; it works 60-70% of the time so don’t be hooked on to the exact numbers – please allow some flexibility).

Can we Bank on it Technically?