Japaul Oil Plc: Bearish volume hits year high as investors dump the stock

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Japaul Oil Plc: Bearish volume hits year high as investors dump the stock

 

April 10, 2012

Today, sentiments analysis reveals that the bearish sentiments towards the stocks of Japaul Oil Plc for the week ended April 05, 2012 gained momentum as the stock topped in traded volume of shares by -3.57% price declines. However, investors sold out their positions, accordingly.



We observed that Japaul Oil Plc traded a massive volume of 32,633,690 shares in 99 trades, representing 16.31% against total market volume traded.

The traded volume today appeared to be the highest so far in the year with astronomical increase in volume by 2332%. The volume significantly surpassed the year’s daily average of 2,333,257.86 and 15days moving average of 4,506,208.00 by 1298.63% and 624%, respectively.

 

 


The traded volume technically indicates that huge sum of money is retreating from the stock since it was a bearish volume precipitated  by falling Money Inflow Index -a momentum indicator that measures the strength of money flowing in and out of a security.

 

Remarkably, the percentage of loss by -3.57% recorded today with such increase in volume suggests a sell-off while the outlook of the price performance in the year remains unimpressive as earlier indicated in our previous report – “Continued weakness in investors/shareholders loyalty”. This observation comes on the share price development, heading to nominal value.

 


Considering the price performance of Japaul Oil Plc shares, the stock closed at N0.54kobo to record YTD declines at -42.55% bearing in mind the year opening price of N0.94kobo but the RSI remains weak in the oversold region, indicating depressed outlook.

Nevertheless, we want to resound that the price retracement is not in doubt as the depressed price posture of the stock could incite price reversal with the application of “Principle of fair value” fundamentals.

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



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