TRADERS WATCH 37
The Nigerian stock market indices over
the past week were mixed to close higher amidst high volatility and mixed
sentiments for earnings season as equity prices are not responding to the impressive
corporate results and actions, even as the long awaited economic recovery growth
plan of the government was made available during the week as investors look
forward to its faithful implementation.
The composite NSEAll-Share Index gained
225.93 points to close the week at 25,238.01 points, after touching a high of
25,543.40 from its opening figure of 25,012.08points, representing a 0.90%
growth for the period on above average traded volume as investors were cautious
of high volatility during the week. The buying volume of total transactions for
the week was 69%, while selling position was 31% to reverse the previous week’s
bear market. Similarly, marketcapitalisation for the period closed higher at
N8.73 trillion, from an opening value of N8.66 trillion, representing a 0.90%
appreciation in value.
Market
breadth analysis shows a negative sentiment as 24 equities recorded gains,
while 31 others lost value for the week.
NSEASI WEEKLY TIME FRAME.
The index on
a weekly time frame had just retraced up on above average volume as cautious
trading and indecision among traders and investors characterized trades within
the period. The market had remained within the falling channel and symmetrical
triangle which is a continuation chart pattern that might support the recovery,
depending on market forces.
The index
touched the down blue line of its recent support level at 25,012.08 to confirm
the retracement. The momentum and trending ability of the market on weekly
frame is weak, as ADX is below 20 for the period at 18.78.
Traders
should watch out for a breakout of the bearish channel as more financials and
inflation data are expected. The first resistance level is at 25.543.40 and the
second resistance at 25,885.23 point, any move down to 25,012.08 and 24,756.12 respectively.
Looking at
technical indicators, the NSEASI closed above
the lower band by 21.1%, while MACD has been bearish in the last 15 trading
days. RSI is reading 38.77 relatively at oversold region. Money flow index on a
weekly time frame is looking down, while daily, it is looking up to indicate
that funds are entering the market. The momentum indicators are mixed as RSI,
CCI and SO are signaling buy, while MACD is indicating sell.
NESTLE
Nestle
Nigeria moved 16.96% over the past week on a bullish sentiment as it finally
rewarded shareholders with dividend for 2016 to reverse the downtrend. Its
price action is looking up within the falling channel to breakout its strong
resistance level at N796 or reversal as double tops is forming within the
bearish channel.The current trend and direction is strong as ADX on weekly and
daily time frame is above 20 at 30.40 and 53.86 respectively.
Traders
should watch out for reversal or continuation of trend to first support level at N600 and any move up to the first resistance level at
N652. The stock is trading below its shortest moving average at N624.
Looking at technical indicators,NESTLE closed above
the lower band by 45.5%.MACD is bearish since 23 trading days. RSI is reading 48.18, while other momentum
indicators like CCI, RSI and SO just signaled buy while MACD is indicating
SELL. MFI is looking down on weekly while on daily time frame is up indicate
that funds are entering the stock, just
as buying volume position of 100% and sell position of 0% for the week.
Analyst Opinion
For fresh positioning, waitfor a pullback as profit taking is
underway and imminent.
FCMB
FCMB was flat over past week on a positive sentiment to form
symmetrical triangle on expectation and low price attraction.
Traders should watch out for a continuation or reversal to first resistant level at N1.29 and second resistance level of N1.35 or reverse down to touch first support level at N1.14 and the second support level at N1.11 per share. Also, the stock is trading above its 20-Day moving average at N1.20 per share. The current trend is weak since it is below ADX 20 at 16.67
Looking at the technical indicators, FCMB closed below the upper band
by 43.8%. MACD is bullish; RSI is reading 48.82, which is relatively strong.
All the momentum indicators are mixed as RSI, SO and MACD are signaling buy
while CCI is signaling sell. MFI is
looking up, indicating that funds are entering the stock. The buy-to-sell
volume indicator reveals 100% buy volume of the stock
Analyst Opinion
Traders and investors should take position
Oando
Oando moved 2.00% over the past week on
a mixed sentiment amidst outlook of upstream oil companies that are into crude
export. Oando is one of the 18 successful Nigerian companies in the Nigerian
National Petroleum Corporation latest bid round announced last week. Its price
action has formed a triangle chart pattern that supports trend continuation.
The trend momentum and direction is weak as ADX on weekly basis is below 20,
while the daily time frame is below 20 at 9.10
Traders should watch out for a breakout
at the first resistance price level of N5.16 and second resistance level of N5.36,
any move down to the first support level of N4.30 and second support level at
N4.10 per share. The stock is trading above its 20-day moving average.
Looking at technical indicators, Oando
closed below the upper band by 15.9%. MACD has been bullish for 10 trading
days. RSI is reading 52.62, while other momentum indicators like MACD and RSI
are signaling buy and SO and CCI are still indicating sell. MFI is looking up,
to indicate that funds are entering the stock, with buying volume position of
48% and selling position of 62% for the week.
Analyst Opinion
Investors should position for medium and
long term.
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