TRANSCORP Plc Sentiment Analysis Report W/E June 08, 2012
Category: Cap Mkt Sentiments
Monday, June 11, 2012/ Proshare Research
TRANSCORPexperienced continued bargain tendency and sustained positive sentiments in the week to record +24.7% gain as against the +7.8% gain recorded in the previous week - renewed strong bargain tendency was observed as the stock broke its 9-mth resistance level of N1.07 (high price recorded on 02 August, 2011) during the week.
The outlook reveals an extra ordinary bargain drive as the stocksustained a 6-wks uninterrupted uptrend, recording a 137% price appreciation to settle at a new 12-mths high of N1.21 with a growing bargain posture, despite the 5-wks general bearish trend in the market. However, analysis suggests that the stock is overbought i.e. trading at its top, indicating possible reversal anytime soon as revealed by RSI and MACD. Though, the stock is yet to display bargain weakness as most momentum indicators maintained a northward trend while the stock remained bullish in both short and mid-long term period as revealed by its price moving average.
Technical Conclusion on Sentiments: The stock is overdue for price correction due to its prolonged overbought posture with a 137% price growth in the last six weeks. However, the bargain drive appeared very strong with potential to extend the uptrend as the market is yet to see any weakness in the uptrend momentum. Nevertheless, we advise a cautious bargain approach as short term retracement is not in doubt anytime soon. The chart below shows MACD, candlestick, RSI and volume analysis.
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