UBA Plc Sentiment Analysis Report - W/E April 27, 2012
Sunday, April 29, 2012/ Proshare Research
UBA Plcexperienced positive and strong bargain sentiments in the week to close bullish with 27.0% gain as against 6.8% gain recorded in the previous- continued and strong bargain tendency observed towards the stock as we have envisaged in our previous sentiment analysis report on the stock.
Experiencing impressive bargain tendency with growing bullish volume in the week, a strong indication of accumulation tendency towards the stock was revealed by the volume trend. Again, the stock remains bullish in both short and mid-long term as suggested by price moving average, buttressed by the strong bullish mode revealed by MACD.
The stock hits above 7months high of N3.41( recorded on October 17 2011) to close at N3.57 as new high while the money flow index maintained northward trend, revealing continued cash flow into the stock.
However, the stock is in an overbought region as revealed by RSI reinforced by price position above upper Bollinger band while MACD also closed in an overbought range. Though the candlestick revealed slight selling in the last session, the stock may extend the uptrend as we have not observed weakness in bargain momentum.
Technical conclusion on sentiments: the stock is in strong bullish mode to record new 7months high. But being in an overbought region indicating possible short term correction, the price may extend the uptrend. A cautious approach is therefore, advised while lower price move is required in the next session before considering exit. The chart below shows MACD, candlestick, RSI and volume analysis.
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