TECHNICAL POSITION OF SELECTED EQUITIES ON THE NSE

The equity market continued its weekly rally as investors’ sentiment remained positive due to the expected very short bull transition in a bear market, despite the current side trending mood of the market as revealed by the Composite Index NSEASI movement that is attempting to breakout the resistance level of 30,350 to 30,580 points.  Below are the technical position of the selected few equities at the end of last week trading.

FO

On September 18, Forte Oil closed above the lower band by 28.8 per cent. Bollinger Bands are 19.86 per cent narrower than normal. The current width of the bands does not suggest anything conclusive about the future volatility or movement of prices. During the past 10 bars, there have been four white and two black candles for a net of two white candles. During the past 50 bars, there have been 23 white candles and 14 black candles for a net of nine white candles. Currently the MACD is bearish since it is trading below its signal line. The MACD crossed below its signal line 9 period(s) ago.  Since the MACD crossed its moving average, FO's price has decreased 2.63 per cent, and has ranged from a high of N234.99 to a low of N216.41. The current value of the RSI and Stochastic Oscillator are 53.12 and 74.77 respectively.

Analyst Opinion:

Traders in FO should take profit while investors should keep their gaze on the company's shareholding structure for the possibility of offer for sales, knowing that it was the shareholding structure that has supported the price and not fundamentals.

DANGOTE CEMENT

On September 18 also, DANGCEM closed above the lower band by 37.0 per cent. Bollinger Bands are 51.32 per cent narrower than normal. The narrow width of the bands suggests low volatility as compared to DANGCEM's normal range.  Therefore, the probability of volatility increasing with a sharp price move has increased for the near-term. The bands have been in this narrow range for 1 period(s). The probability of a significant price move increases the longer the bands remain in this narrow range. During the past 10 bars, there have been five white candles and three black candles for a net of two white candles.  During the past 50 bars, there have been 22 white candles and 19 black candles for a net of three white candles.MACD crossed above its signal line three period(s) ago. Since the MACD crossed its moving average, DANGCEM's price has decreased 1.76 per cent, and has ranged from a high of N170.00 to a low of N164.00. The current value of the RSI is 44.64.

Analyst Opinion:

Dangote Cement has formed a descending triangle pattern that suggest a continuation or reversal of the event as price closed lower that it opened on the last trading of the week. Traders should wait to confirm before taking short position, while investors with long term investment perspective should accumulate at this low price.

NASCON

NASCON closed below the upper band by 14.1 per cent. Bollinger Bands are 14.28 per cent narrower than normal. The current width of the bands does not suggest anything conclusive about the future volatility or movement of prices. During the past 10 bars, there have been six white candles and four black candles for a net of two white candles.  During the past 50 bars, there have been 16 white candles and 22 black candles for a net of 6 black candles. Currently the MACD is bullish since it is trading above its signal line. The MACD crossed above its signal line 13 period(s) ago.  Since the MACD crossed its moving average, NASCON's price has increased 7.05 per cent and has ranged from a high of N6.69 to a low of N5.80. The current value of the RSI and Stochastic Oscillator are 57.60 and 87.50 respectively.

Analyst Opinion:

This stock is already forming a double top with the yellow line, any positioning by Traders or Investors now should wait to confirm breakout or pullback.

OKOMU OIL PALM

OKOMUOIL closed below the upper band by 10.8 per cent. Bollinger Bands are 106.68 per cent wider than normal. The large width of the bands suggest high volatility as compared to OKOMUOIL's normal range. Therefore, the probability of volatility decreasing and prices entering a trading range has increased for the near-term. During the past 10 bars, there have been seven white candles and 0 black candles for a net of seven white candles. During the past 50 bars, there have been 11 white candles and 12 black candles for a net of 1 black candle. Currently the MACD is bullish since it is trading above its signal line. The MACD crossed above its signal line 13 period(s) ago.  Since the MACD crossed its moving average, OKOMUOIL's price has increased 21.59 per cent and has ranged from a high of N29.60 to a low of N23.75. The current value of the RSI is 77.72.

Analyst Opinion:

Traders that positioned in this stock at the beginning of the month should take profit, while investors with long term goal should wait for pullback before positioning.

ACCESS BANK

ACCESS closed below the upper band by 26.0 per cent. Bollinger Bands are 18.72 per cent narrower than normal. The current width of the bands does not suggest anything conclusive about the future volatility or movement of prices.During the past 10 bars, there have been five white candles and four black candles for a net of one white candle. During the past 50 bars, there have been 20 white candles and 27 black candles for a net of seven black candles. Currently the MACD is bullish since it is trading above its signal line. The MACD crossed above its signal line 20 period(s) ago.  Since the MACD crossed its moving average, ACCESS' price has increased 10.45 per cent and has ranged from a high of N5.40 to a low of N4.26. The current value of the RSI and Stochastic Oscillator are 57.90 and 77.69 respectively.

Analyst Opinion:

Investors should use low price of the stock now to increase stake in the bank. The very short term traders should keep their gaze on this stock

BERGER PAINTS

BERGER closed below the upper band by 0.4 per cent. Bollinger Bands are 31.99 per cent wider than normal. The current width of the bands (alone) does not suggest anything conclusive about the future volatility or movement of prices. During the past 10 bars, there have been two white candles and one black candle for a net of one white candle.  During the past 50 bars, there have been eight white candles and 13 black candles for a net of 5 black candles. Currently the MACD is bullish since it is trading above its signal line. The MACD crossed above its signal line 11 period(s) ago.  Since the MACD crossed its moving average, BERGER's price has increased 9.72% and has ranged from a high of N9.93 to a low of N9.05. The current value of the RSI and Stochastic Oscillator are 66.63 and 95.83 respectively.

Analyst Opinion:

Profit booking underway, as the stock is struggling to break out.

CUSTODIAN & ALLIED

CUSTODYINS closed below the upper band by 22.2 per cent. Bollinger Bands are 55.87 per cent narrower than normal. The narrow width of the bands suggests low volatility as compared to CUSTODYINS's normal range. Therefore, the probability of volatility increasing with a sharp price move has increased for the near-term. During the past 10 bars, there have been two white candles and one black candle for a net of one white candle.  During the past 50 bars, there have been 11 white candles and nine black candles for a net of two white candles. Currently the MACD is bullish since it is trading above its signal line.The MACD crossed above its signal line 0 period(s) ago.  Since the MACD crossed its moving average, CUSTODYINS's price has been unchanged, and has ranged from a high of N4.06 to a low of N4.06. The current value of the RSI is 53.70.

Analyst Opinion:

Breakout is imminent and any taking position in the stock should be now.

ASHAKA CEMENT

ASHAKACEM closed below the upper band by 13.9 per cent. Bollinger Bands are 76.53 per cent narrower than normal. The narrow width of the bands suggests low volatility as compared to ASHAKACEM's normal range.  Therefore, the probability of volatility increasing with a sharp price move has increased for the near-term. During the past 10 bars, there have been one white candle and two black candles for a net of one black candle.  During the past 50 bars, there have been seven white candles and seven black candles. Currently the MACD is bearish since it is trading below its signal line. The MACD crossed below its signal line 21 period(s) ago. Since the MACD crossed its moving average, ASHAKACEM's price has increased 2.27 per cent, and has ranged from a high of N22.50 to a low of N22.00. The current value of the RSI is 57.87.

Analysis Opinion:

Traders should confirm this trend and position accordingly for the very short term.

FBNH

FBNH closed below the upper band by 41.3 per cent, Bollinger Bands are 3.36 per cent narrower than normal.  The current width of the bands (alone) does not suggest anything conclusive about the future volatility or movement of prices. During the past 10 bars, there have been four white candles and 5 black candles for a net of one black candle.  During the past 50 bars, there have been 13 white candles and 33 black candles for a net of 20 black candles. Currently the MACD is bullish since it is trading above its signal line. The MACD crossed above its signal line 14 period(s) ago.  Since the MACD crossed its moving average, FBNH's price has increased 3.09 per cent, and has ranged from a high of N7.00 to a low of N5.95. The current value of the RSI is 48.10

Analyst Opinion:

Traders and Investors should keep their gaze on this stock and position now at the current low price.

SKYE BANK

SKYEBANK closed above the lower band by 45.7 per cent. Bollinger Bands are 46.22 per cent wider than normal. The large width of the bands suggest high volatility as compared to SKYEBANK's normal range. Therefore, the probability of volatility decreasing and prices entering (or remaining in) a trading range has increased for the near-term.  During the past 10 bars, there have been four white candles and five black candles for a net of one black candle. During the past 50 bars, there have been 16 white candles and 30 black candles for a net of 14 black candles.  Currently the MACD is bearish since it is trading below its signal line. The MACD crossed below its signal line five period(s) ago. Since the MACD crossed its moving average, SKYEBANK's price has increased 0.89 per cent, and has ranged from a high of  N2.35 to a low of  N2.20. The current value of the RSI is 50.95.

Analyst Opinion:

Long term investors should position at this low price and traders should target reversal before buying.

STERLING BANK

STERLNBANK closed above the lower band by 24.7 per cent. Bollinger bands are 46.53 per cent narrower than normal. The narrow width of the bands suggests low volatility as compared to STERLNBANK's normal range. Therefore, the probability of volatility increasing with a sharp price move has increased for the near-term. During the past 10 bars, there have been three white candles and five black candles for a net of two black candles. During the past 50 bars, there have been 12 white candles and 19 black candles for a net of seven black candles. Currently the MACD is bearish since it is trading below its signal line. The MACD crossed below its signal line 0 period(s) ago.  Since the MACD crossed its moving average, STERLNBANK's price has been unchanged, and has ranged from a high of N2.13 to a low of N2.08. The current value of the RSI is 43.94.

Analyst Opinion:

The stock is trending down already, traders should wait for reversal and jump in for sweet returns.