Technical Analysis of MJLBD: Part 2 on 6 May 2017

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

Fundamentally MJL is a good growth company.

First let me evaluate the previous analysis done on 27 March 2017: http://imti77az.blogspot.com/2017/03/technical-analysis-of-mjlbd-on-27-march.html

Forecast: I expected price to come down to ~104.

Actual: MJL reversed from 108.

Although it didn’t come down fully to expected price, this is a positive sign in itself.

Furthermore, the chart has other signs of bullishness: breaking a downtrend line and re-test complete; double bottom reversal with divergence and a gap.

It might give another opportunity to add ~115 with Stop Loss at 111.

I will be surprised if it does not go to at least 130 . . .

One major risk is if GOB reduces price of LPG.