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Karachi, April 17, 2018 (PPI-OT): ENGRO Corporation – Engro Corporation: Ready to Resume Up-trend?
ENGRO turned lower from a long-term Fib resistance at 326.25 (50% Fib of 403.50/ 149 larger descend) as visible on its daily time frame. Price had been consolidating last week on relatively low volumes making a correction of the uptrend. The falling price action bounced off from a resistance-turned-support level of 312 yesterday which also coincides with daily 21 EMA support adding more to its strength as floor. The recent consolidation has also alleviated the overbought condition of oscillators on short-term time frame, perhaps a sign that the bulls are simply catching their breath before taking the price on another run higher. At this point, RSI is turning north while stochastic is climbing up from oversold region, both indicating that buyers are taking control of the price action.
On upside, the next move will depend on the direction of the break of short-term levels as per daily charts. If the short-term descending resistance at 317.50 gives way, which is our base case, then there is a further overhead resistance seen at 321.50. Ability to hold onto this would lead to a revisit to 326.25 level.Sustained progression above this area would put the stock on a stronger climb to the levels of 336 and 345 next.