CADBURY Plc Sentiment Analysis Report – W/E April 27, 2012
Sunday, April 29, 2012/ Proshare Research
CADBURY Plcexperienced positive sentiments and improved bargain tendency in the week to close with 27.4% gain as against 2.7% recorded in the previous week- an improved bargain and sustained positive sentiments was observed towards the stock in the week.
Maintaining a strong bargain posture to stay bullish in both short and mid-long term as revealed by price moving average buttressed by MACD, the position of the price above upper Bollinger band by 9.9% revealed strong buying tendency of the investors. This further suggests the possibility of the price to extend the uptrend as the price hits above its 6months high of N14.20 (recorded on October 28, 2011) to close at N14.40.
The price; trading in an overbought range as revealed by RSI shows the confirmation by MACD posture - the overbought range of the stock, which indicates possible reversal or short term price correction in near term.
Again, the candlestick pattern in the last trading session revealed the presence of the bears (short-termist), scrambling for profit. This further suggests the possibility of price reversal buttressed by the huge bearish volume recorded in the last session albeit money flow and accumulation index maintained northward trend.
Technical conclusion on sentiments: The stock is still in strong bullish mode with growing accumulation tendency. However, there is possibility of price correction as the stock hit above its 6months high to close in an overbought region. The last candlestick pattern was a reversal signal which reveals presence of bears. A cautious approach is advised as the sustainability of the uptrend has low reliability. Meanwhile, lower price position in the next session is required to confirm the price correction trend.The chart below shows MACD, candlestick, RSI and volume analysis.
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