Sentiment Analysis Report - W/E July 08, 2016

Proshare

Sunday, July 10, 2016/Proshare Research

 

The Diagnosis

Analysis of the market activity in the week ended July 08, 2016 technically revealed sustained pessimistic trading pattern and growing price volatility as investors maintained profit-taking tendency in the week.

 

Also, an extensive analysis revealed a sustained active distribution pattern amid cautious trading, particularly in Agriculture, Industrial Goods and Healthcare sectors.

 

In addition, volume analysis revealed active sell tendency towards SKYEBANK, DIAMONDBNK, TRANSCORP and FCMB while investors displayed moderate bargain sentiments towards OANDO, UNITYBNK and ZENITHBANK

 

Furthermore, investors displayed fresh sell tendency in some active sector(s), particularly in Industrial Goods, Healthcare and Agriculture sector(s). Meanwhile, we observed a fresh bargain tendency in Oil & Gas sector(s).

 

Summarily, the bears rule the week, depressing the key benchmark index by 450.42 points against 1,344.26 loss recorded in the previous week to close at 28,854.98- ASI remains weak below its key resistance level at 41,957.50

In addition, the All Share Index traded within the   range of 29,002.06 (week-high) and 28,854.98 (week-low) to settle at 28,854.98- below previous week’s low (29,305.40) by 450.42- This indicates active negative sentiments when compared with previous posture. The outlook reveals active sell postures.

 

In the week just ended, market breadth closed negative at 0.32x against 0.68x recorded in the previous week on the back of active profit-taking.

 

Likely trends in the coming periods:  We expect speculative tendency to persist in the coming periods as investors displayed active profit-taking propensity amid waning risk appetite.



Technically, market sentiments during the bearish week favoured liquid and active stocks of Medium Cap categories in the sector(s) but with stronger positive sentiments in Oil & Gas, which further revealed the sector(s) investors patronised in the week.

 

On the other hand, it was observed that negative sentiments appeared stronger in Services, Financial Services, Agriculture, Consumer Goods, Industrial Goods, Healthcare and Conglomerates sector(s).




Stock Trend & Direction

We conducted a review of stocks that have sharpened market direction and performance in the week - using technical tools like RSI, MACD, VOLUME, MFI, CANDLESTICK, MOVING AVERAGES, BOLLIGER BANDS and ACCUMULATION & DISTRIBUTION to reveal investors’ sentiments towards the market movers.

THE BIG VOLUME

FIRSTBANK experienced moderate sell tendency to close with negative sentiments in the week. The stock recorded -3.30% loss in the week against -5.80% loss recorded in the previous week.

The outlook in the week revealed continued short-term price correction, following 9weeks rally of 32.33% experienced between April 22nd and June 17th 2016.

In addition, technical indicator (MACD) revealed sustained weak bargain tendency towards the stock while RSI and CCI revealed decline in uptrend momentum. The stock closed neutral in short-term but remained bullish in mid-long term periods, indicating growing presence of bears towards the stock as revealed by its price moving averages.

In addition, we observed sustained growth in bearish volume during the week, indicating active distribution of the stock during the week.

 

Technical conclusion on sentiments: The stock has moderate chance, with moderate reliability to sustain downtrend in the coming session, considering the sustained weak bargain pattern observed in the week.  A Cautious Signal! Chart below shows MACD, candlestick, RSI and volume analysis



THE GAINERS

STANBIC    experienced moderate bargain tendency to close with positive sentiments in the week. The stock recorded +5.40% gain in the week against -7.40% loss recorded in the previous week.

The outlook in the week revealed a sustained price recovery pattern with 26.23% gain in the last 13 weeks, following a prolonged 38weeks sell-down of 55.89% loss, experienced between May 28th 2015 and April 8th 2016.

In addition, technical indicator (MACD) revealed growing bargain tendency towards the stock as RSI and CCI had revealed growing price momentum. The stock closed bullish in both short-term and mid-long term periods, indicating growing presence of bulls towards the stock as revealed by its price moving averages.

 

Technical conclusion on sentiments: The stock has moderate chance, with moderate reliability to sustain uptrend in the coming session, considering the gap-up rally recorded in during last session. A Buy Signal! Chart below shows MACD, candlestick, RSI and volume analysis



THE LOSERS

GLAXOSMITH experienced moderate sell tendency to close with negative sentiments in the week. The stock recorded -9.70% loss in the week against +4.10% gain position recorded in the previous week.

The outlook in the week revealed moderate profit-taking tendency towards the stock in the week, following 2weeks of active price recovery of +63.29% gain experienced from June 17th to July 1st 2016.

Technical indicator (MACD) revealed growing sell-down with a sharp falling pattern in price momentum while the stock remained bearish in mid-long term but closed neutral in short-term periods. This indicates sustained presence of the bulls towards the stock.

 

Technical conclusion on sentiments: The stock has moderate chance, with low reliability, to extend the sell sentiments in coming sessions, considering the active sell propensity observed during last session. A Cautious Signal! Chart below shows MACD, candlestick, RSI and volume Analysis



Click to view Due Diligence and Price Performance trend.

 

Click to view more on;

FIRSTBANK

GLAXOSMITH

STANBIC

  

Disclaimer: The information provided herein is our opinion only. Under no circumstances do any statements here represent a recommendation to buy or sell your stocks or make any kind of an investment. You are responsible for your own due diligence. To summarize, we do not provide recommendations nor do we make any claims or promises that any information here will lead to a profit, loss or any other result. They are for your guidance purpose only. 

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