Technical Analysis of Alarafah Islami Bank on 14 March 2017
This is no buy/sell recommendation - just a trial to see if Technical Analysis (works to an extent) in Dhaka Stock Exchange.
With the Index facing Supply at 5697, what does it need to break it?
Fundamentals: It is doing well (with slight annual growth) and consistent dividends. PE ~9.
Now to the Technicals: It seems to be forming an Ascending Triangle (as a pattern, triangles are not that reliable). Assuming that Resistance at 21.40 is broken on High Volume, the measuring target is around ~5 + 21.40 = 26.50
I am not that confident. For it to happen, it needs to break 21.40 on high volume and then pull-back to the Resistance on low volume and then move higher on increasing volume.
It is very risky to enter now as it has risen from ~12 from April 2016.
I would keep stop loss at 5%. Let us see what happens . . .
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