Karachi, October 19, 2017 (PPI-OT): D.G. Khan Cement Company Limited – Descending Channel Breakout!!
Yesterday’s price action broke above the descending channel resistance at 144 with expansion in volumes whilst a strong closing above 150 mark argues of a neckline break out indicating a potential double bottom reversal in the making.
This is considered as a reversal pattern which affirms more gains ahead.
On a bigger picture, the falling price action appears to be stalling at the long-term correction levels. The monthly studies reveal that the selling pressure is subsiding near 50% Fib of 12.04 / 250.40 larger ascend at 131.22. This area coincides with a long-term trend-line support, adding more to its strength as a support.
Moving forward, ability to hold above 144/ 145 maintains a bullish bias on the daily charts with 157 and 160 levels in sight. A sustained progression above this area would however put the stock on a higher climb towards 38.2% of 250.40/ 132.80 larger descend at 177.72.