Monday, May 21, 2012/ Proshare Research 
 

NACHO Plc experienced a sustained sell tendency and growing negative sentiments to record a -27.7% loss as against the -2.9% loss recorded in the previous week - an overwhelmed sell tendency was observed towards the stock in the week.
 

The stock remained bearish and closed neutral in the short and mid-long term period respectively as revealed by its price moving average, suggesting that the stock is still within the ambit of the bears. The stock appeared depressed, closing within an oversold region as revealed by the RSI while the position of MACD in an oversold region buttressed this further.
 

However, the volume trend revealed swinging accumulation tendency in the week while money flow index maintained northward trend with slight volatility, indicating flow of money into the stocks as investors accumulated intermittently.

Technical conclusion on sentiments: the stock appears depressed as revealed by RSI and buttressed by MACD due to sell pressure. However, the probability of price consolidating into less volatile trading range has increased as revealed by Bollinger band. This suggests waning sell tendency and low volatility in the coming period as emerging sentiments has moderate possibility to be positive. The chart below shows MACD, candlestick, RSI and volume analysis.

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