Sunday, May 06, 2012/ Proshare Research
 

FCMB Plc experienced mixed sentiments in the week to record 6.7% gain as against -5.1% recorded in the previous week- an improved bargain and market sentiments was observed as the stock records new year high in the week.

The stock recorded significant bullish volume in the week, which indicates and propped up the improved bargain postures of investors towards the stock. In addition, the stock remains bullish in both short and mid-long term period as revealed by price moving average and intensified by MACD.

Subsequently, the stock recorded new high of N5.70koboin for the year but failed an attempt to break its 8months resistance at N5.70kobo (recorded on August 24th 2011) due to loss of momentum experienced in the week as revealed by RSI while similar weakness observed in money flow index, deepening the mixed sentiments noted above.

There is however the possibility of breaking the resistance in the coming periods, considering the significant bullish volume growth observed towards the end of the week, which indicates continued accumulation trend.

Technical conclusion on sentiments: There is moderate possibility for the stock to break its 8months resistance level at N5.70kobo while the positive sentiments may extend the uptrend, as the stock remains bullish in both short and mid-long term. The chart below shows MACD, candlestick, RSI and volume analysis.

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