Monday, April 2, 2012/ Proshare Research

BAGCO experienced a bullish week to gain 25.9% gain in the week against -4.7% loss recorded in the previous week.

The bargain trend revealed strong and new interest towards the stock, considering the candlestick pattern (white Marubuzo), the price momentum and the large volume traded.

More so, the positive sentiment is likely to continue as MACD confirms the strong bullish mode while the money flow index maintained strong northward trend.

In addition, the price moving average also confirms price momentum to be bullish in short term while the stock maintains neutral position in long term.

However, the RSI reveals the stock to be in overbought region, which means the stock is due for short term correction anytime soon, buttressed by price position above upper Bollinger band. Though, the strong buying tendency observed might postpone the short term correction beyond near term.

Technical conclusion on sentiments: There is strong buying tendency towards the stock which is likely to continue after the likely short term correction. The RSI revealed overbought position of the stock. This suggests the stock is due for short term correction anytime soon. Though, the continuation of the bullish trend is not in doubt as money continued to flow into the stock while bulls are fully in control of sentiments.The chart below shows MACD, candlestick, RSI and volume.

http://www.proshareng.com/quote/BAGCO

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