In our NSE summary for the week ended March 16, 2007, I noted that NB closed at N34.99 representing a loss of N2.16, or 5.8% for the week. Last week, I noted that the closing price of N37.15 was the lowest price the stock had closed since February 13, 2007.
Therefore, I indicated that if the N37 price is breached, the next two price supports were N36 and N35 respectively. NB subsequently breached the N37 price and closed at N34.99 on Friday March 16, 2007.
In my summary of the weekended March 16, 2007, I represented that the stock has very strong support at the current price (N34.99), and I look for a bounce of this price level. In todayÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¡Ãƒâ€šÃ‚Â¬ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¾Ãƒâ€šÃ‚Â¢s trading (Monday ÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¡Ãƒâ€šÃ‚Â¬ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â‚¬Å¡Ã‚Â¬Ãƒâ€¦Ã¢â‚¬Å“ March 19, 2007), the stock opened at N35.50 and closed at N36.73 on a trading volume of 1.6 million shares.
TodayÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¡Ãƒâ€šÃ‚Â¬ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¾Ãƒâ€šÃ‚Â¢s (190307) volume was approximately 600 thousand more that March 16, 2007 trading volume.
However, this reversal is suspect until the stock trades above its 20 day and 50 day SMAsÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¡Ãƒâ€šÃ‚Â¬ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¾Ãƒâ€šÃ‚Â¢ of N37.27 and N38.75 respectively.