Monday, May 21, 2012/ Proshare Research
 

UBN Plc experienced strong sell tendency and trend reversal sentiments as the stock witnessed consistent price correction in the week to record -18.0% loss as against +14.4% gain recorded in the previous week. An expected strong price correction trend was observed while the stock erased the +14.4% gain recorded in the previous week.

The stock remained within the ambit of the bears while experiencing sell pressure as revealed by MACD. Also, the price moving average revealed the stock to be in a neutral position in both short and mid-long term period, buttressing the dominance of the bears and the sell pressure noted above. Additionally, the price pattern indicates strong sell pressure while the consistent falling price momentum confirms the consistent distribution trend witnessed in the week.

The chance that the stock may dip further into a depressed or oversold region has increased due to the absence of bargain tendency as revealed by the sharp fall in RSI and money flow index (MFI).

Technical conclusion on sentiments: there is a moderate possibility for the falling trend to continue in the next few sessions, considering the falling momentum amid an absence of bargain drive is revealed by the candlestick pattern. However, a slight decline in sell pressure was observed as indicated by the volume trend, suggesting the sell pressure could cease anytime soon. The chart below shows MACD, candlestick, RSI and volume analysis.

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

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