Transcorp Plc Sentiment Analysis Report - W/E May 18, 2012
Monday, May 21, 2012/ Proshare Research
Transcorp Plc experienced strong bargain tendency and improved positive sentiment to record a 23.73% gain as against the 5.4% gain recorded in the previous week - sustained and growing active bargain drive was observed towards the stock in the week, recording a new high of N0.73kobo for the year while breaking its 7months resistance of N0.69kobo by 5.80% - this indicates renewed positive sentiments from investors.
The stock maintains its short term bullish mode and sustained its neutral posture in the mid-long term as revealed by its price moving average, indicating the stock is yet to attain full bullish mode. In addition, we observed that the price closed above upper Bollinger bands by 4.4% which suggests further that the steep uptrend in price has a good chance of continuing while the stock is at its top.
To buttress this further, MACD's posture at overbought range confirmed the bullish posture of the stock and the active buying tendency of the investors while money flow index revealed a similar trend despite the overall bearish sentiment in the market.
However, the stock is trading within overbought range as revealed by RSI, buttressed by MACD while price position above upper Bollinger band also confirms this posture, indicating possible short term pull-back.
Technical conclusion on sentiments: the stock is currently in overbought range while experiencing strong bullish tendency. The possibility of a short term pull-back anytime soon is not in doubt, though there is no sign of weakness in the uptrend momentum at the moment. A cautious treading is advised amid possible continuation of price uptrend in the next few sessions. The chart below shows MACD, candlestick, RSI and volume analysis.
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